Do you have a 401(k)? If you do, chances are that your 401(k) is part of a program offered by your employer. If you are about to change employers, or if you’ve recently lost your job – a more common occurrence today – then you are probably wondering what to do with your 401(k) fund. If your employer allows you to participate in their 401(k) plan, and many employers will, you could always leave it where it is. You could also rollover your account into an Individual Retirement Account, or IRA as they are more typically referred to, but there are 401(k) rollover fees to consider. When you roll over your 401(k) into an IRA, you will enjoy greater flexibility and have more diverse investment options. You can also do a partial 401(k) rollover – ask your employer for more information about this type of transfer.
401(k) Rollover Information
Let’s say you’ve been working at your company for the past 6 years, and have been participating their retirement plan the whole time. You have now built up a nice nestegg. You’ve accepted another job, however, and are wondering what to do. You may decide to keep your money in your current 401(k) plan, or move it over to the plan offered by your new employer. Or you might roll it over into an IRA. That may be the most appealing option for you since when you have your money in and IRA, you have more kinds of investments you can make. For example, with an IRA you can invest in individual stocks, bonds, or mutual funds that you just happen to like. You will probably have to evaluate your choices yourself, but at least you’ll have the freedom to do so.
To learn more about your 401(k) rollover limit or 401(k) rollover withdrawal for more diverse investment options or any other long-term investment question, be sure to consult with a financial advisor. He or she can walk you through the pros and cons of all your potential investment instruments.
