We Can Help You Roll in Outside Retirement Accounts

HAVE YOU FOUND YOURSELF IN THIS SITUATION? YOU’VE CHANGED JOBS A FEW TIMES AND HAVE MONEY IN YOUR FORMER EMPLOYERS’ RETIREMENT PLANS. WHAT DO YOU DO WITH THOSE FUNDS?

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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 of LA Deferred Compensation Plan (DCP) account. You’re allowed to roll your other eligible retirement accounts into your DCP account. 401(a), 401(k), 403(b), and governmental 457(b) plans are all eligible employer-sponsored retirement plans. 

A “rollover,” if made directly from your former employer’s plan to the DCP, 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 a 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? Contact the DCP to discuss all of your options for any retirement assets held outside of your DCP account and determine the best choice for you. There are many options for your retirement savings and it’s important to make decisions that will help you make the most of your savings.

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