Left my job. Now what?

If you’ve left your employer, you may be wondering what happens to your 401(k).
The good news: you typically have 3 options and we’re here to help you choose the one that fits your goals.

  • Move your retirement savings to another qualified retirement account, such as your new employer’s 401(k) or an Individual Retirement Account (IRA). A rollover allows your money to remain tax-deferred so you can continue saving for retirement.

  • Taking cash from your 401(k) gives you immediate access to your money, but it can reduce your retirement savings and create a tax bill.

    A minimum of 20% is withheld for federal taxes. (Additional taxes may be due when you file your return).

    If you’re younger than 59½ a 10% early withdrawal tax may apply.

  • Leave your money in your former employer’s plan and keep it invested for potential growth. While you can no longer contribute, you can still access your account, manage investments, and contact us with questions. A minimum balance of $7,000 is required to remain in the plan.

Have Questions? Email us.
 
 

Know the terms.

Own your decisions.

  • A rollover means moving money from one retirement account to another, such as from a 401(k) to an IRA or a new employer’s plan. This allows your savings to remain invested and tax-deferred.

  • Cashing out means withdrawing retirement money to use outside of a retirement account. Taxes and possibly penalties may apply.

  • A distribution is simply money paid out from your retirement account. This could be a rollover distribution or a cash distribution.

  • If you withdraw money before age 59½, you may owe an additional 10% early withdrawal tax, unless an IRS exception applies.

 
Have Questions? Email us.