Know your 401(k) options between jobs

Know your 401(k) options between jobs

October 15, 2021
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Few life events are more stressful than a job loss.

If you or someone you know is in this situation due to COVID-19, you likely have questions about job hunting, unemployment insurance, and health care. You may also be wondering, “What should I do with my 401(k)?”

People leaving an employer typically have four options with their 401(k) retirement plan, but it’s not an all-or-nothing decision. Depending on your situation, it may be possible to engage in a combination of these options:

  • Leave the money in your former employer’s plan, if permitted;
  • Roll the assets over to your new employer’s plan, if one is available and rollovers are permitted;
  • Roll the assets into an Individual Retirement Account (IRA); and/or
  • Cash out the account value.

Each choice offers advantages and disadvantages. If you are uncertain what action to take with your retirement accounts, let's talk. Over the years, I’ve found the best financial decisions are the ones that consider all available options.

You may reach me at (804) 665-1589 or kmurphy@capfs.com.  You may access my calendar here to request a time to meet in person, by phone or via Zoom.