General 401K and 403B Facts
Many employers offer either a 401K or 403B plan for their employees. These plans typically match three to six percent of your contribution. The best plans match dollar for dollar. It only stands to reason that, if your employer offers one of these plans with any type of match, it is in your best interest to participate. These plans have the added convenience of the participant being able to make direct deposits pretax from your payroll. In some cases, there is a vesting period before you are allowed to enroll. Each medical facility has a different vesting period. We work closely with every human resource department and can answer any general question regarding your retirement plans.
It is always in your best interests to rollover any 401K or 403B plan with a previous employer into an IRA (Individual Retirement Account) . There are no penalties for you to move a 401K or 403B into an IRA. However, there are substantial penalties from the IRS if a 401K or 403B plan is accessed prior to retirement for personal reasons. Once you have transferred your retirement funds into an IRA your previous employer is no longer involved with your retirement funds. There are unlimited investment options involved with an individual retirement account or IRA. We would be happy to explain those options to you.
The general rule of investing is the younger you are the more risk you can take. As you become more mature, your investing should become more conservative. The bottom line is it is your choice and you should invest accordingly to your tolerance for risk. We offer many products that involve little to no risk.
There are a limited amount of employers in the area that offer nurses pensions. These plans are generally described as defined benefit plans. They work two ways: (1) The participant has the right to rollover their pension into an IRA with no penalties. We have helped many nurses to track down these pensions and roll them over into an IRA. (2) Some plans offer only a monthly benefit to be withdrawn at retirement. Generally, there is an option at 55 years old and at 65 years old. If you elect the 55 years old option, it will typically cut the monthly benefit in half. Please feel free to contact us if you have questions regarding an old pension plan.