What to do with a 403(b) after leaving a job

There are several different options you have for what to do with a 403(b) after leaving a job, including letting the funds remain, rolling them over to an IRA, or withdrawing them. Here are more details on the most common options you have:

• Let the funds remain in your plan

  The first option is to essentially do nothing, and let your 403(b) funds remain in your plan. This option enables you to continue to experience tax-deferred growth until you reach the age of retirement, however, this also depends on the rules of your specific plan, and if it allows this.

• Roll over funds into an IRA

  The next option is rolling over your old 403(b) funds into an IRA (Individual Retirement Account), or another qualified employer plan. This option enables you to retain control over your retirement savings, possibly access more investment options, and simplify your funds by consolidating your various retirement accounts.

• Withdraw your 403(b) funds

  Your final option is to withdraw your 403(b) funds. You can do this at any time, however, this option does carry the risk of significant tax implications. if you are under the age of 59, you might also incur early withdrawal penalties.

  Before taking action regarding this decision, it is very important for you to review your specific 403(b) plan and perhaps enlist the services of a financial advisor to help you make an informed decision that will positively impact your long-term retirement objectives.