Pension
I have a pension that I’m not sure what is the best route to take. I am no longer with that employer so I don’t know if I should leave it, move it or withdraw.
Terry Says
Is it a true pension — or a retirement savings plan, such as a 40l(k) or 403(b)? The difference is important!
If it’s a true pension, then ask if you are “vested” in it and can withdraw or roll over a lump sum. And ask what if you leave it there, and at what age it will start paying out. They should be able to give you that info at your former employer. That will determine your options.
If it is a 40l(k) or similar plan, if you’ve left your former employer (and assuming no company stock in the plan) then you should call Vanguard or Fidelity and they will help you do a direct rollover to an IRA — paying no taxes and letting the money continue to grow tax-deferred until you take it out at retirement.
