Essential Guide to Managing Your 401(k) Rollovers When Switching Jobs
Wednesday, 24 July 2024, 13:37
Understanding 401(k) Rollovers
When you change jobs, your 401(k) rollover might be losing money if you do not address it. Many employees neglect to manage this transition properly, leading to potential financial losses.
What Happens to Your 401(k)?
- The funds can stagnate in your former employer’s plan.
- Inactivity may incur fees or penalties.
- Investment options may be limited.
Steps to Take
- Evaluate your existing 401(k) options.
- Consider rolling over to an IRA.
- Alternatively, transfer funds to your new employer's 401(k) plan.
Conclusion
It's essential to take charge of your 401(k) rollover after switching jobs to prevent losing money. By considering the available options, you can protect and grow your retirement savings effectively.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.