Old 401(k) Blues? What to Do After a Job Switch

Job hopping is the new normal, right? But what happens to your retirement savings when you switch gigs? That old 401(k) at your previous employer... what do you do with it? As a CFP, I help clients navigate this all the time, so let's break it down.

Option 1: Leave it Be

If your old 401(k) has stellar investment options and low fees, leaving it alone might be a good choice.

Option 2: Roll it into Your New 401(k)

Consolidating is great, right? If your new employer's 401(k) has solid investment choices, rolling your old one in can simplify things.

Option 3: Roll it into an IRA

This is where you get more investment flexibility and you no longer have to deal with your old HR.

Option 4: Cash Out (Please Don't!)

Okay, unless you're in a dire emergency, cashing out your 401(k) is usually a bad idea. You'll get hit with taxes and penalties (if you're under 59 1/2). That's money you could have put toward your future!

The Bottom Line

There's no one-size-fits-all answer. Consider:

• Your investment options

• Fees

• Your risk tolerance

• Need for creditor protection

Rolling over your 401(k) might be the right move if you want to simplify your accounts. If you need guidance or just want to explore all of your options don't hesitate to call me! (530) 232-4822