Now that you have gotten over the shock of losing your job, take control of your assets!
You have 4 choices to consider.
1. Leave it with your former employer. Most companies-not all-allow you to leave your retirement savings in their plan.
2. Roll over your 401(k) into your new employer’s plan.
3. Roll over the money into an IRA.
4. Cash out.
Leave it where it is.
Pro-Requires no action
You like the investment options
Possible better mutual funds and fees
Con-Company may go out of business-difficult to find the plan administrator.
If it is under $5,000, the administrative fees may be high.
Roll over to new employer.
Pro-This is a direct transfer or trustee to trustee.
Easier to track.
Possible matching contribution at new employer
Con-All your “eggs in one basket.”
Roll over to IRA.
Pro-Choice of investments. You make decisions or have management.
Con-Choice of investments. You make decisions or have management.
Con-Taxes on the amount cashed out.
May move you to a higher tax bracket.
Under age 59½-10% penalty beyond taxes.
These are your options. I can help you make an informed choice that is right for you.
Take control! These are your retirement savings and you want to make the most out of them.
Call for a free consultation.
Investment Adviser Representative
Independent Insurance Agent
Investment Adviser Representative of and investment advisory services offered through Royal Fund Management, LLC, a SEC Registered Investment Adviser.