By Neal Ringquist
In his 1/20/16 MarketWatch column (Four New Year’s Resolutions for Retirement Savers), Retirement Clearinghouse CEO Spencer Williams offers four New Year’s resolutions that all 2016 job-changers should take to heart, including:
- Don’t cash out, or leave behind, your 401(k)—Roll it into your current plan
- Make sure plan record-keepers have your up-to-date address on file
- Don’t throw away annual reports and statements!
- If you plan to retire in 2016, do all of the above ASAP
This is particularly important advice, argues Williams, given the fact that so many job-changers a) cash out their retirement savings, or b) leave their accounts “stranded” in a previous employer’s plan.
If you’ve put off account consolidation because you expect the process will be time-consuming and complicated, Williams suggests contacting your human resources department at your current employer to seek assistance, or engaging a third-party provider of roll-in services for a flat fee.
If you’ve already consolidated, then Williams congratulates you on your resolve! But Williams further advises that you make sure your plan record-keeper has your current mailing address for all notices, statements and reports.
So, if your plans for 2016 include a job change, retirement or move, your retirement nest egg will be better protected if you follow Williams’ four New Year’s resolutions.