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Retirement
Changing Jobs
Understand Your Options
Rollover IRA
Move to New Employer's Plan
Leave Your Assets Where They Are
Lump Sum Distribution
Comparing Options
Which Distribution Option Makes Sense for You?
Frequently Asked Questions
Test Your Knowledge
Getting Started
Test Your Knowledge: Changing Jobs The following quiz is a review of the material on changing jobs. If you have trouble with a question, refer back to the appropriate article for help.
A rollover IRA is ( ).
A new trick for your dog
An account for proceeds from a qualified retirement plan when you change jobs
Never tax-advantaged
Lacks support in the investment community
You can avoid the mandatory 20 percent withholding on a retirement plan distribution by ( ).
Not telling anyone you are doing it
Putting the account in your child's name
Investing in goverment bonds
Setting up a direct distribution into an IRA rollover or other qualified retirement account
What is the advantage of moving your old retirement plan to your new employer's plan?
You look good to your new employer
You avoid mandatory withholding if done as a direct distribution
It makes your account tax-free
You get to double the interest rate paid by the new plan
Tax rules for the distribution from your former employer's account ( ).
Allow only one indirect rollover every 365 days
Require a 20 percent withholding by your old employer if you don't have a direct distribution set up
May impose a penalty on the account if not re-invested in a new qualified retirement account within 60 days
All of the above
A drawback of leaving your retirement investments with your former employer is ( ).
The plan may limit withdrawals and exchanges between investments
Your former employer may keep your investments
You can only leave your savings in the plan for a limited time
You will receive a lower rate of return
With an indirect distribution of your retirement proceeds, you can recover the mandatory 20 percent withholding ( ).
After five years
When you file your income tax for the year
At retirement
When you start a new job
