Leaving Your Employer Group Plan - Part 1
What to Do with Your Group Retirement Savings Plan
- Leave it with your existing group plan provider.
- “Registered transfer” to your new employer plan (if you have one)
- “Registered transfer” to a personally held individual retirement account.
- Cash it out and face the tax consequences.
- Your “fees” may be higher since you are no longer with your employer (gets transferred to an individual plan held under the group administrator), and it is still generally a Do-It-Yourself account when it comes to managing it. There is a limited investment selection. You may also forget and neglect the account.
- Generally, a Do-It-Yourself account as with most group plans and limited investment selection.
- You will pay regular investment fees (whatever are being charged in your existing individual accounts and the transfer fee out fee which varies based on the group plan company) and you will be working with whomever has been managing your investments (could be a good or bad thing, haha)
- Taxes on withdrawal and loss of RRSP lifetime contribution room. Amount that can be withdrawn is generally limited by what you had personally contributed to the plan and may not include the employer matched portion.
Want more information?
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Mississauga, ON
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