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Let’s assume you’ve moved on from your old job and left behind your 401(k). What
are your options?
Option 1: Roll into your new 401(k) plan
Compare your old plans investment options and fees with your new plan. Fees include
the cost of the investments and the administration costs of the plan often paid by employees.
Option 2: Roll into an IRA
IRAs open up your investment choices and don’t restrict you like a 401(k) does. They can
be cheaper as well.
Option 3: Keep the old 401(k)
You could potentially leave your assets, due to great investment options and low fees.
However, this option is usually because people forget about their old 401(k).
Option 4: Cash Out
You should avoid this option at all costs. Unless it’s a last resort, withdrawing from
your 401(k) before age 59 ½ enacts a 10% penalty in addition to paying income tax.
Need help deciding what’s best for you? Schedule a meeting with us today.