The last thing you may be thinking about when you change jobs is what to do with your existing 401(k). However, this transition can be an opportunity to evaluate your retirement savings strategy.
- With your new job there may be an opportunity to save more.
- It’s an opportune time to evaluate your investment approach. Is it too conservative or far too aggressive?
- It may also be an opportunity to consolidate retirement plan assets you have left behind with other employers.
When you leave a job for a new one, you are entitled to the vested portion of your company’s retirement savings plan. In fact, there are generally four options available to you.
- Stay with your previous employer’s plan.
- Roll over to your new employer’s plan.
- Cash out your 401(k) which can bring tax consequences.
- Roll over into an Individual Retirement Account (IRA).
At Jemma Financial, we can help you to understand these options and determine what makes sense for you. You’ve worked hard to build savings. We’ll help you to build upon them.