State Retirement Investment Plan/Retirement Plan |
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longjohn
New Poster
Cash: $ 0.50
Posts: 2
Joined: 12 Oct 2014
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State Retirement Investment Plan/Retirement Plan |
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I started working for the State 7 years ago and I enrolled into the State Retirement System (FRS) Investment plan. I'm about to separate from govt and go private which my new employer offers a 401k as part of their benefits package.
Now my question is, considering I may return to employment with the govt at a later date. Is it worth sticking with FRS, moving it to the 401k or switching (I can switch once) from investment to retirement.
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Mon Oct 13, 2014 11:58 pm |
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MrNewEngland
Full Member
Cash: $ 20.85
Posts: 98
Joined: 04 Nov 2009
Location: The QC |
Re: State Retirement Investment Plan/Retirement Plan |
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quote: Originally posted by longjohn I started working for the State 7 years ago and I enrolled into the State Retirement System (FRS) Investment plan. I'm about to separate from govt and go private which my new employer offers a 401k as part of their benefits package.
Now my question is, considering I may return to employment with the govt at a later date. Is it worth sticking with FRS, moving it to the 401k or switching (I can switch once) from investment to retirement.
As a government employee that is enrolled in my State's retirement plan (it's not optional here btw) I have spoken to several people that have left and come back.
The consensus is that if you come back it's better to leave the money in the retirement account. In my state the money only makes 4% / year so it's tempting to pull it out and "buy back" your time if you come back later - thinking that you can beat that return. From what most people I have spoken to here that have left and returned is that it doesn't work that way and they regret pulling their money out.
My advice is leave that money alone for now. If you've been there 7 years I am assuming you're vested and can leave it. In my state that comes after 5 years. If after a few years you see that you're never returning you can still always roll that money into an IRA and manage the money as you see fit.
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Tue Oct 14, 2014 2:38 pm |
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