Handling your 401k when Changing Jobs
When you make a career switch, you also need to decide what you’re going to do with your 401k.
Should you leave the funds where they are or take your plan with you? Should you roll the money into an Individual Retirement Account (IRA) or transfer it to your new employer? Here are some choices:
• Take the money and run — You can withdraw your 401k in a lump sum and use the funds to meet expenses or invest elsewhere. Because these distributions involve complex tax issues, it’s always wise to consult a professional for more information.
• Another option is to simply leave resources in your old employer’s 401k and let them grow tax-deferred. However, you may not always have this opportunity, because some companies require you to take your money or withdraw it once you reach normal retirement age.
• You can roll them over to a traditional IRA you already have or open a new one. With an IRA, the timing and amount of distribution is generally at your discretion until you reach age 70 ½. You can also convert it to a Roth IRA.
Your membership puts the expertise of an investment representative, located at America First Credit Union Financial Solutions, at your service. Please call 1-800-999-3961 or send an email to firstname.lastname@example.org for a no-cost, no-obligation appointment.
Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (CFS), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk, including possible loss of principal. Investment representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to members.