Saving for your retirement is critical. One of the most popular retirement savings and investment vehicles available is the 401k fund.
As a retirement savings plan, the 401k is a true favorite. If you have a 401k plan that is offered by your company and you decide to leave your job, you may not be allowed to participate in your former employer's 401k plan. That being said, it does not mean you have to cash out your 401k retirement fund: on the contrary, you can shift the money into a new 401k policy or other retirement savings investment vehicle, such as an IRA. When you take the money from a 401k and put it into a new 401k this is called a 401k rollover.
Rolling Your 401k Over
If you are moving on to a new job, or if you've been laid off, you are probably wondering about the fate of your 401k plan.
The good news is that you can rollover your 401k into a new one, or another type of retirement savings vehicle, such as an IRA. When you rollover your 401k funds into a new one, you avoid having to pay punishing taxes and early withdrawal fees, which can take a shockingly big bite out of the money in the fund.
The biggest benefit to a 401k rollover is the fact that your retirement funds will still be there when you need them at the age of 65, or whenever it is that you decide to stop working. You put the money into the 401k plan for a reason, and that reason - a secure retirement - doesn't change just because your job situation has.
To learn more about 401ks, IRAs, retirement savings vehicles, and the benefits of a 401k rollover, be sure to consult with a financial adviser.
