Your 401(k) And Your Job Change

401k Murrieta CA

How To Safeguard Your Retirement Savings

Times have changed quite a bit. While your grandparents likely kept the same career for most of their lives, the United States Bureau of Labor Statistics reveals that the median number of years that people remain at the same job is just 4.6 years. While moving jobs can be the best thing for your career and your family, it can be a little tricky to ascertain the best course of action with your 401(k). Here are a few of your options.

  1. Move It With You: If your new employer offers a 401(k), you will likely be able to transfer the money in your existing 401(k) over to your new account. This will allow you to keep your retirement savings condensed in a minimal number of places and enable you to take advantage of employer matching, but it could also mean not being able to withdraw the funds until you leave your job.
  2. Leave It Behind: If you were very happy with the 401(k) offered through your old employer, you may be able to leave it there. While you will not be able to contribute anymore, this can help you keep your money in an account with strong returns.
  3. Convert It: If your new employer does not offer retirement benefits and you cannot leave you 401(k) with your previous employer, you can roll the funds over into an IRA. Be aware that if your previous employer does not directly roll the funds over for you, you have just sixty days to get the funds into your IRA before there will be tax implications.

To connect with a group benefit expert who has the industry experience to guide you to the right course of action with your 401(k), contact CorMarc Insurance Services in Murrieta, California.