Ready to rollover your 401k?

There are a few options when it comes to you 401k after leaving a job.

#1 Leave it where it is

You can leave your 401k where it is and it will continue to be managed by the original record keeper you signed up with such as TD Ameritrade, Schwab, Fidelity etc. 

#2 Roll it over to a Roth IRA or a Traditional IRA

Rolling your 401k over to a Roth IRA or a Traditional IRA gives you the benefit of having more options to invest in, and can give you peace of mind knowing that you have severed ties with your previous employer. As with all of the options, this one might not be suited for everyone. You can, however, use your own financial advisor to help you manage your account, if you choose to go down this route.

#3 Roll it over to new employer's 401k Plan

This allows to start your new 401k with a positive balance, but can also mean that you are limited on investments. In most cases, you are making a wise decision by matching your employer's contribution to your 401k and then starting an IRA for additional individual contributions

#4 Take a lump sum (cash it out)

Cashing out your 401k can come with some tax implications. These implications should be discussed with your tax professional before taking a lump sum from your 401k

#5 Take Distrubutions

At age 59&1/2 you can start taking penalty free deductions from your 401k. Prior to 59&1/2 you will incur a 10% penalty. As with all investments, there are tax consequences so it is important that you talk with a tax professional before making a decision.

Regardless of your end decision our financial advisors are happy to help you along the way. Give us a call for your 401k related questions and let us help ease the burden of changing jobs.