Before retirement, today it is common for employees to change employers at least several times throughout their career. Therefore, whether employees are changing jobs or retiring, they must decide what to do with their retirement monies. Typically, employees have four options including:

1. Leaving their assets in their former employer's plan;
2. Rolling their assets directly into their new employer's plan (rollover);
3. Taking a cash distribution; or
4. Rolling their assets into an IRA (rollover).

Terminating employees who decide to leave assets in the former employer's plan, may want to consider that decision carefully. Maintaining assets in multiple employer retirement plans can make the assets more difficult to manage. Also, if the terminating employee's account balance is between $1,000 and $5,000, the former employer has the right to automatically rollover the terminating employee's monies to an IRA the employer establishes if the employee leaves the assets in their former employer's plan.

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