401(k)'s and leaving a job

A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out.
Once you leave a job that offers a 401(k) the question is what should you do with that account? Well you have basically 4 options. You can leave it at the old employer, cash it out, move it to your new employer if they offer a 401(k) or roll it over to an IRA. 
There are pro’s and con’s with each of these options depending on your circumstances. There can be penalties with cashing the account out before age 59 and a half. Really the best option in most cases is rolling the 401(k) into an IRA. Fees are usually lower, and you have more control over the account.
If you have several 401(k)’s you’ve left at jobs over the years combining those into one account can save on fees plus it’s much easier keeping track of the account. If you want more information call for an appointment 320-679-5183.