When you change jobs, what should you do with the money in your employer-sponsored retirement plan? You could roll over the balance to a new employer’s plan, but rolling it into an IRA may give you broader investment flexibility. Neither type of rollover is taxable, and both options allow you to continue benefiting from tax-deferred earnings until you take withdrawals. But there’s an often-overlooked situation when a taxable lump-sum distribution may make sense: If the account holds appreciated stock of your former employer, you may achieve better long-term tax results by distributing the company stock to a taxable brokerage account instead of rolling it over. Contact us to learn more.
