When you leave a job—whether for a new opportunity, to meet the needs of your family, or when retiring from the workforce—it’s important to make a plan for the retirement assets you’ve accumulated. There are four common courses of action for your 401(k), which all have varying costs and tax implications. Depending on your employer, you can:
- Move assets into an individual retirement account (IRA).
- Maintain assets in your former employer’s plan, if they allow it.
- Transition assets into your new employer’s plan, if they will accept them.
- Take a lump-sum distribution.
Each route has pros and cons. It’s best to evaluate your options by working with a tax-intelligent financial advisor who can speak to your unique situation, short-term needs, and long-term goals. Schedule a complimentary consultationwith Kendra Peterson to discuss the best route for your retirement assets.