Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
Have you been recently been hired for a new job? As you make the move, don’t forget about your 401K. What are you going to do with that money?
Option one; leave it. Your former employer might let you keep your 401K in its current position. Leaving it is a good option if you’re happy with the current performance and investment options. However, you won’t be able to make any more contributions to that account.
Option two; rollover your assets. Your new employer may allow you to roll your old 401K into your new retirement savings. You could also roll it directly into an individual retirement account. This is a good option if you want more control over how your money is invested.
Option three; cash out. Keep in mind, it will cost you. You’ll have to pay income taxes typically on all of that money and you’ll likely have to pay an additional 10% penalty if you’re under the age of 59 1/2.
Categories: Living Show