What You Can Do With Your Old 401(k) Account
When you leave your current job, you may face a common question about what to do with your old retirement plan. Whether you are leaving the job involuntarily, resigning to start a new job, or expect to change jobs several times in the coming years, you need a plan for your retirement savings with your previous employer. This is your 401(k), 457, or 403(b) account.
Leave Your Account Where It Is
Many companies allow you to keep your 401(k) savings in their plans after you leave your job. This is often only if you meet the minimum balance requirements, which is usually $5,000. Because this option does not require any action, it is often chosen by default. But leaving your 401(k) account where it is is not always a result of procrastination. There are some valid reasons to do so.
Transfer Old 401(k) Assets to Your New Employer’s Plan
You have the option to avoid paying taxes (including the 10% early withdrawal penalty) by making a direct transfer or “from institution to institution” from the old plan to the new employer’s plan, if the new employer’s plan allows it.
Managing Indirect Rollovers
With an indirect rollover, you will receive a check for the balance of your account made out in your name. You may b
Source: https://www.thebalancemoney.com/what-to-do-with-an-old-401k-4097704
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