So you’ve lost or changed your job, PennyGem’s Justin Kircher has some options for your 401(k).
Category
📚
LearningTranscript
00:00 So you've lost or changed your job.
00:06 Here are some options for your 401k.
00:08 One course of action could be inaction.
00:11 You could leave your funds with your past employer.
00:13 CNBC says the investments will stop, but hopefully there will still be some growth.
00:17 The outlet does say most companies will only allow this if you have a balance of $5,000
00:21 or more.
00:22 If your new job offers a 401k, you can roll over your previous funds into a new account.
00:27 The balance says many companies offer a plan-to-plan rollover option, and there are typically no
00:31 penalties or tax burdens with this option.
00:34 If your new job doesn't offer a 401k, you can move the money into an IRA or individual
00:38 retirement account.
00:40 According to the balance, there should be no tax consequences with this move either,
00:44 and you can also decide how to invest those funds, whether it's stocks, bonds, mutual
00:48 funds, etc.
00:49 You could cash out and spend it.
00:50 However, the site says that if you're under the age of 59 and a half, you'll be paying
00:54 taxes on it, and there will likely be a 10% penalty.
00:57 It's possible that whatever you withdraw will be slashed in half, so maybe only go to that
01:02 well if you really need it.
01:03 (upbeat music)