Q. I am leaving my current employer next week, what options do I have for my 401(k) savings with the current employer?
A. Once your employment ends, you have four options for your company-sponsored retirement assets:
1) Leave the money in your former employer's plan;
2) Roll the funds into a new employer's plan (assuming you continue to work);
3) Transfer the assets into an IRA account; or
4) Cash out the balance, paying the applicable taxes and penalties (which depend on your age and circumstances).
How to determine which is your best option? See our next blogpost.
A. Once your employment ends, you have four options for your company-sponsored retirement assets:
1) Leave the money in your former employer's plan;
2) Roll the funds into a new employer's plan (assuming you continue to work);
3) Transfer the assets into an IRA account; or
4) Cash out the balance, paying the applicable taxes and penalties (which depend on your age and circumstances).
How to determine which is your best option? See our next blogpost.
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