Job Changes
Keep on track with your financial goals when changing jobs.
Employment transitions can be energizing and nerve-wracking.
There’s a lot to consider when moving to a new job, starting a small business, going self-employed, or continuing to work while in retirement. No matter the circumstances, it is possible to continue saving for your goals.
Keep saving for your future.
Questions? Call us at 1-800-332-6161
Leaving a job
When moving on from a current job and starting a new one, you have options. Here are a few things to consider when making the transition.
Your old retirement savings plan
When changing jobs, you have four options for your previous employer’s 401(k) or 403(b)*:
- Stay in your plan
- Roll over to your new employer’s plan
- Roll over to an IRA
- Cash out
Update Information
If you currently invest with us, be sure to update your information to include any change in address, beneficiaries, or employment.
Starting a small business or going self-employed
Striking out on your own is a big decision and one that can bring a lot of satisfaction. Planning for your future becomes even more important when taking this step. We offer several options to help you and your employees save for retirement.
Some options to consider include:
- SEP-IRA Plan: For self-employed individuals.
- SIMPLE IRA Plan: For self-employed individuals and business with less than 100 employees.
- Individual 401(k) Plan: For self-employed individuals and their working spouses.
- 401(k) for Small Business: For small business owners and their employees.
Working in retirement
For a variety of reasons, many people opt to continue working once in retirement. Here are a few things to consider if you are thinking about taking this step.
Retirement accounts
With a regular source of income, you can continue contributing to your existing retirement savings accounts. Just keep in mind:
- At 73, you must start taking required minimum distributions (RMDs).
- You can always contribute to a Roth IRA, regardless of age.
- IRS Contribution limits do apply and may change every year.
Social Security
By continuing to work, you might be able to delay taking monthly Social Security benefits. Just keep in mind:
- Most people will be entitled to their full Social Security benefit at age 66 or 67. You may choose to take your benefit as early as age 62; however, your benefit payment will be permanently reduced.
- Your Social Security benefit amount increases each year you delay taking benefits until age 70.
Tax implications**
Continuing to work could push you into a higher tax bracket. Just keep in mind:
- Knowing how close your current income level is to the next tax bracket can help.
Uncertain of next steps?
We can help.
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For investment goals during this or any season of life, we've got you covered.
Talk to us
Speak with a Financial Consultant for general investment guidance and educational resources.
Monday–Friday, 8 a.m.–8 p.m. ET.
Financial advice solutions
We offer different levels of advice that can help you achieve your goals and build a secure financial future.
An IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Maximum contributions are subject to eligibility requirements. Non-qualified distributions may be subject to taxes and penalties. For more detailed information about IRAs, consult IRS Publication 590-A, IRS Publication 590-B or a tax professional regarding personal circumstances.
(*) Consider all available options, which include remaining with your current retirement plan, rolling over into a new employer’s plan or IRA, or cashing out the account value. When deciding between an employer-sponsored plan and an IRA, there may be important differences to consider—such as range of investment options, fees and expenses, availability of services, and distribution rules (including differences in applicable taxes and penalties). Depending on your plan's investment options, in some cases, the investment management fees associated with your plan's investment options may be lower than similar investment options offered outside the plan.
This material is for general and educational purposes only and is not intended to provide recommendations concerning investments, investment strategies, or account types. It is not based on your particular needs or individualized circumstances and is not intended to suggest that any particular investment action is appropriate for you.
(**) T. Rowe Price Investment Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material.
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