Rollover to a New Employer's Plan

If you are starting a new job, you might be able to roll over your retirement savings directly into the plan offered by your new employer.  If your new employer offers a NADART retirement plan, you have the option of transferring (via direct rollover) your vested account balance to the new NADART plan.  A rollover allows your money to continue to grow on a tax-deferred basis, postponing federal, state and local taxation, and any applicable early withdrawal penalty.

However, every plan has different rules and requirements. Be sure to investigate the plan provisions with your new employer and compare it to your other options before making your final decision. It is your responsibility to verify that your new employer will accept your rollover (even if your new employer sponsors another NADART plan), especially if your rollover contains after-tax voluntary contributions or Roth contribtuions. Consider:

        Non-NADART Plans

  • You will be limited to the investment alternatives available under the new plan.
  • Access to withdraw your money may be restricted by plan provisions.
  • Additional fees may be charged to your rollover account if you are not immediately eligible to make contributions under the provisions of your new employer`s plan.

        NADART Plans

  • You will not be able to make additional contributions to your new employer`s plan until you fulfill the age and service requirements, unless the new employer has common ownershp* or affiliation** with your current employer.
  • Access to withdraw the transferred amount is restricted by plan provisions.  This means that these funds will not be available until you leave your new job or qualify for an in-service withdrawal.
  • Additional fees may be charged to your rollover account if you are not immediately eligible to make contributions under the provisions of your new employer`s plan.

If you are a married participant whose vested account balance exceeds $5,000, you must receive plan benefits in the form of a Qualified Joint and Survivor Annuity unless your spouse signs a waiver of his/her right to this form of payment. A Qualified Joint and Survivor Annuity provides both a guaranteed payment amount distributed at regular intervals (monthly, quarterly, etc.) throughout your life and a similar benefit continuing for the life of your spouse. If you select another form of benefit, your spouse must sign the waiver section of the NADART Benefit Request Form (N-10).

* Businesses with some common ownership may be defined as a commonly controlled group if certain complicated standards are met. Transferring between businesses in a common controlled group or an affiliated group allows you to participate in your new retirement plan immediately and also credits you for service with the related employer. For instance, if you were 80% vested with one employer, you would be 80% vested with your new employer if the two employers are part of the same commonly controlled or affiliated group.

**Businesses with some common or family ownership may affiliate by including an affiliation provision in the plans` joinder agreements. Transferring between businesses in a common controlled group or an affiliated group allows you to participate in your new retirement plan immediately and also credits you for service with the related employer. For instance, if you were 80% vested with one employer, you would be 80% vested with your new employer if the two employers are part of the same commonly controlled or affiliated group. If you are transferring to an affiliated employer, please read the Affiliated Transfer Fact Sheet (pdf).