BAPTIST HEALTH SYSTEM, INC. WELFARE BENEFITS PLAN
BAPTIST HEALTH SYSTEM, INC. WELFARE BENEFITS PLAN Plan Rollover
If you leave BAPTIST HEALTH SYSTEM, INC., you have the following four choices regarding your account in BAPTIST HEALTH SYSTEM, INC. WELFARE BENEFITS PLAN:
- Rollover to your new company’s retirement plan: this will consolidate your retirement accounts, combining the existing one with the new one in your new employer.
- Stay in the existing account: this takes no effort but it creates one more retirement account to take care of. Some people might even forget about it for many years and have to find it many years later. If the existing plan has good investment options and ultra-low cost funds, you might still want to consider this option, however.
- Rollover to a traditional IRA account or Roth IRA account if your account is a Roth 401(k) account: there are several advantages to rollover to an IRA account in a brokerage.
- Withdraw from your existing account: two big drawbacks to watch out for this option. You’ll have to pay ordinary income for the gains in your account over the years. Furthermore, If you withdraw money from your 401(k) before 59 ½, the IRS usually charges a 10% tax as an early distribution penalty.
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What to Do with Your 401(k) When You Leave Your Current Employer?
Pros and Cons of Rollover from a 401(k) to a Self-Directed IRA