Retirement planning for those who work for more than one employer is essentially the same as for those who work for only one. You must still make the same asset allocation decisions and determine your risk tolerance and investment objectives. Of course, you must also compare the investment options and other features that are available to you in each retirement plan. If one plan offers matching contributions up to a certain amount and the other does not, then you should probably contribute at least as much as necessary to get the entire match. However, if the other plan has better investment funds or other alternatives to choose from, then you may want to divert any additional contributions there. However, your aggregate contributions to any type of qualified retirement plan cannot exceed the contribution limits for any individual plan for that year. For example, in 2012 you are allowed to contribute $17,000 to a qualified plan. Therefore, your aggregate contributions to both plans cannot exceed that amount for this year.

It is not possible to combine retirement plans from more than one employer if you are still working for both companies. However, you may be able to roll one plan over into the other if you quit working for one or both of them. If you leave one employer, then you will be allowed to move the assets from that plan into your other plan, provided that that employer's plan document allows it to receive rollover assets (this is usually permissible). You can also roll both plans into the same IRA account after you stop working for both employers.

  1. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
  2. What are the main kinds of annuities?

    There are two broad categories of annuity: fixed and variable. These categories refer to the manner in which the investment ... Read Full Answer >>
  3. What are the risks of rolling my 401(k) into an annuity?

    Though the appeal of having guaranteed income after retirement is undeniable, there are actually a number of risks to consider ... Read Full Answer >>
  4. How do I get out of my annuity and transfer to a new one?

    If you decide your current annuity is not for you, there is nothing stopping you from transferring your investment to a new ... Read Full Answer >>
  5. Are Cafeteria plans exempt from Social Security?

    Typically, qualified benefits offered through cafeteria plans are exempt from Social Security taxes. However, certain types ... Read Full Answer >>
  6. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
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