401(k)'s what do you do when you leave a job?

 You know when it comes to 401(k)’s I think there’s such a “hands off” philosophy. Many places you can get automatic services with the account and you don’t have to do much with it. But when the time comes you leave that job, it’s important to know what you want to do with that old account. You can do nothing, leave the account where it is. Of course, the contributions stop and the employer match, and some places you have to have at least $5,000 in the account to leave it in. If you start a new job and are offered a 401(k) you can roll your old one into the new one. You can roll it into an IRA. If the 401(k) fees in your new plan are high, then consider rolling your old plan into an IRA. This also helps keep your retirement savings streamlined — you can consolidate all of your old 401(k) balances into one IRA. You really save on fees from multiple places this way. You could roll it to a Roth IRA. If you lost your job and want to move your money out of your former employer’s 401(k), this could be a great year for a Roth conversion, since your income will have dropped. Remember you pay the tax on a Roth up front but that means the money grows tax-free and you aren’t hit with taxes when you make a withdrawal.

If you have questions call 320-679-5183 or go to yoursafemoneyshow.com.