Susan Brandeis, CFP® gives you four options for handling your 401(k) when you start at a new company.
“Hi, I’m Susan Brandeis, CERTIFIED FINANCIAL PLANNER™ and Director of the financial planning department at Pure Financial, and this is your Question of the Week.
The Question of the Week is: what are my options for my old 401(k) when I start working at a new firm? There are four options I would like to talk to you about.
1. The first option is to do nothing. Leave the assets in your previous employer’s plan. For example, your previous employer’s plan might have lower fees.
2. Another option is to roll that money over to your new employer, if allowed.
3. The third option is to rollover the money from your previous employer into an IRA or Roth IRA.
4. The fourth option is you can cash out that account. Now, if you were to do that, you’re going to cause tax consequences and penalties and fees.
Of course, it’s important to consult with a financial professional before you make any of these decisions. I”m Susan Brandeis, and that’s your Question of the Week.”