Combining Your Retirement Savings into the Plan

Have you found yourself in this situation? You’ve changed jobs a few times, and have money in your former employers’ retirement plans.

Since you no longer work for those employers, you can’t contribute to those plans anymore. But you do need to keep track of the investments in those accounts.

It might be easier to organize everything in one place, especially if you like the investments and other features of your City Deferred Compensation Plan account.

You’re allowed to rollover your other eligible retirement accounts into your current account here. 401(a), 401(k), 403(b) and governmental 457(b) plans are all eligible employer-sponsored retirement plans. 

A “roll over,” if made directly from your former employer’s plan to your City Plan, is not considered a taxable event if conducted in accordance with IRS rules.  If the rollover is not a taxable event, the transaction itself will be reported on an IRS Form 1099-R reflecting the distribution and rollover out of your former employer’s plan.

You might consolidate your retirement savings in the plan if you want:

  • A clearer picture of your retirement savings.

  • Your retirement savings all invested in the same fund(s) that align with your risk tolerance and investment strategy.

  • The simplicity and convenience of managing one account using one website and toll-free Plan Information Line.

  • The possibility of saving on fees by combining separate accounts into one.

Is a rollover into your account right for you? Find out by contacting the Plan today to discuss all of your options for any retirement assets held outside of your Plan account. As you plan for retirement, it’s important to make decisions that will help you make the most of your savings. There are many options for your retirement savings. Determine which one is right for you.

Daniel Powell