If you have decided that it is time to change employers and you currently have a 401K, you will probably find yourself wondering what you should do about it. There are a few options for you, so you will want to go over those to help you determine which is the best option for your particular needs. Here are a couple of options for you to take into consideration:
Take The Cash Out And Spend It
One option is to withdraw the cash from the 401K and spend it on things you need or debts that need to be paid. Of course, when you do this, you are no longer able to take advantage of the tax deferment. This also depletes your retirement fund, and if you do not have another fund that is gaining money for you, you may have to start from square one with a 401K with your new employer.
Roll It Over
You may have the option to roll your 401K from the old employer into a 401K that you will set up with your new employer. Of course, you need to double-check to make sure that your new employer has a 401K plan that they provide to their employees and, if they do, whether it is worth taking advantage of. Talk with a 401K rollover specialist to gain a better idea as to whether you should roll your money into the new 401K or possibly just roll it over into an IRA.
Leave It With Your Old Employer
You might have the option of keeping your money in the 401K that is set up with your old employer. However, if you do not have a lot in there, the employer can simply write you out a check and refuse to continue the 401K. If you have a lot in there, they cannot do that. You will need to consider how easy it will be to talk with your old employer as needed about your 401K and if it will even be worth the stress. Your 401K rollover consultant can help you factor in the pros and cons of leaving your retirement plan exactly how it is set up.
Whatever you do, you do not want to ignore the money you have earned and saved towards your retirement. Even if you do not consider it to be a lot of money just yet, it is still yours, and you want to make sure that you are making the best decisions with it.