What happens to my retirement savings if I change jobs?

When an individual decides to change jobs, they typically have several options regarding their retirement savings. If their previous employer offered a retirement plan, such as a 401(k), the individual can usually leave their funds in that account, roll them over to their new employer’s plan, or transfer them to an individual retirement account, also known as an IRA. Keeping the funds in the former employer's plan may be convenient, but it can limit investment options and interaction with the account. Rolling over to the new employer's plan allows the individual to maintain a more cohesive retirement strategy, providing access to potentially different investment choices. Moving the savings to an IRA can also offer greater flexibility in terms of investments and account management. One of the significant considerations is the potential tax implications; rolling funds directly from one retirement account to another typically avoids taxation. It is advisable to ensure that any transfers are executed properly to maintain the tax-advantaged status of the retirement savings. The Prudential Retirement website contains helpful resources and contact information for further guidance on these options.