Navigating Job Transitions: Smart 401(K) Investment Strategies

Rolling over your old 401(k) into your new company’s plan can make it easier to track your retirement savings, since you’ll have everything in one place. Your savings have the potential for growth that is tax-deferred, and RMDs may be delayed beyond age 73 if you continue to work at the company sponsoring the plan. However, you'll need to liquidate your current 401(k) investments and reinvest them in your new 401(k) plan's investment offerings, which will take time and some research.

Convenience

If you decide to keep your money in your previous employer's plan, consider the amount of money in your account and the investment options available. Rolling over your old 401(k) into your new company's plan can offer convenience by centralizing your retirement savings in one place. This makes it easier to track and manage your investments.

However, if you switch to your new employer's 401(k) plan, you'll have the convenience of all your assets in one place. This can be especially beneficial if you like seeing all your investments in one place. Additionally, moving to your new employer's plan may eliminate additional costs associated with maintaining your balance with your old employer.

It's worth noting that direct rollovers are a convenient way to transfer funds from your old plan to your new employer's 401(k) plan without incurring taxes or penalties. This process can save you time and potential financial burdens.

In summary, convenience plays a significant role in deciding the fate of your 401(k) after a job change. Weighing the options of keeping your investments with your previous employer or rolling them over to your new employer's plan can help you make an informed decision that aligns with your financial goals and preferences.

Lower fees

Moving your old 401(k) after changing jobs and into your new employer’s qualified retirement plan is an option. The new plan may have lower fees or investment options that better support your financial goals. Rolling over your old 401(k) into your new company’s plan can also make it easier to track your retirement savings, since you’ll have everything in one place.

Direct rollovers are a good option as they give you the option to transfer funds from your old plan directly into your new employer’s 401(k) plan without incurring taxes or penalties.

Consulting with a financial advisor who can compare the investments and features of both plans is recommended.

Some things to think about if you’re considering rolling over a 401(k) into a new employer’s plan:

• Direct rollovers.
• The amount of money in your account.
• The new investment options available to you.
• The withdrawal rules of the new plan.

Tax-deferred growth

Rolling over your old 401(k) into your new company’s plan can also make it easier to track your retirement savings, since you’ll have everything in one place.

Your savings have the potential for growth that is tax-deferred, and RMDs may be delayed beyond age 73 if you continue to work at the company sponsoring the plan.

If your previous employer’s 401(k) allows you to maintain your account and you are happy with the plan’s investment options, you can leave it. This might be the most convenient choice, but you should still evaluate your options.

The money will still have the chance to grow in your new employer's plan — just make sure you like the new investment options available to you. And you'll be able to save on all the additional costs that come with just keeping your balance with your old employer.

Moving your old 401(k) after changing jobs and into your new employer’s qualified retirement plan is also an option. The new plan may have lower fees or investment options that better support your financial goals.

One-stop-shop

If you are considering rolling over your old 401(k) into your new company’s plan, it can make it easier to track your retirement savings, since you’ll have everything in one place. Convenience is a key factor in this decision. Direct rollovers give you the option to transfer funds from your old plan directly into your new employer’s 401(k) plan without incurring taxes or penalties.

The new plan may have lower fees or investment options that better support your financial goals. Your savings have the potential for growth that is tax-deferred, and RMDs may be delayed beyond age 73 if you continue to work at the company sponsoring the plan.

Each year, American workers manage to lose track of billions of dollars in old retirement savings accounts, so you should make sure to track your account regularly, review your investments as part of your overall portfolio and keep the beneficiaries up to date.

Consult with your tax advisor or attorney regarding your specific situation.

RMD delay

RMD stands for Required Minimum Distribution, which is the minimum amount of money that must be withdrawn from a retirement account each year. If you move your 401(k) to your new employer's plan, you can delay RMDs beyond age 72 if you continue to work at the company sponsoring the plan.

Rolling over your old 401(k) into your new company’s plan can also make it easier to track your retirement savings, since you’ll have everything in one place. Your savings have the potential for growth that is tax-deferred, and RMDs may be delayed beyond age 73 if you continue to work at the company sponsoring the plan.

If your previous employer’s 401(k) allows you to maintain your account and you are happy with the plan’s investment options, you can leave it. This might be the most convenient choice, but you should still evaluate your options. Each year, American workers manage to lose track of billions of dollars in old retirement savings accounts, so you should make sure to track your account regularly, review your investments as part of your overall portfolio and keep the beneficiaries up to date.

If you move the money into your new employer's 401(k) plan, you'll be able to save on all the additional costs that come with just keeping your balance with your old employer. And unlike with the IRA rollover option, you won't have to take required minimum distributions at age 72 if you move the money into your new employer's 401(k) plan.

If you're considering rolling over a 401(k) into a new employer’s plan, talk with a financial advisor who can compare the investments and features of both plans.

Frequently asked questions