Navigating Your 401k Rollover Options: What You Need to Know

Matthew Barker |

Hey there, folks! Today's blog is a short and sweet one, but it's packed with valuable information about an important topic: rollover options for your 401k. Understanding your choices is crucial, especially in uncertain economic times.


As we anticipate a potential economic slowdown, it's likely that we'll see higher unemployment rates. People may find themselves seeking new job opportunities, whether it's you, a friend, a colleague, or a family member. And if you or someone you know has money sitting in an old 401k or employer plan, it's essential to know what your options are.


Let's break down the four main options:


  1. Leave it in the plan: Depending on your balance and your specific situation, leaving your funds in the old employer's plan might seem like a viable option.


  1. Roll it over to a new IRA or employer plan: This option allows you to transfer your funds to a new account that can accept them, providing you with more control and flexibility over your investments.


  1. Cashing it in: While this is technically an option, it's not one we recommend. Cashing out your 401k can come with hefty taxes and penalties, significantly diminishing the value of your retirement savings.


  1. Combination approach: You can choose to roll some funds over and cash out the remainder, although this isn't typically the most advantageous choice.


When considering your options, we highly recommend rollovers as the best course of action. By transferring your funds to a new IRA or 401k, you gain greater flexibility and access to a wider range of investment choices. Plus, you no longer have to worry about limited access to your funds or being restricted to the investment options offered by your old employer's plan.


If you anticipate this decision impacting you or someone you know, we encourage you to reach out to us or share this information. We're here to help you make informed decisions and ensure you're equipped to make the best choice for your financial future. Here’s the link to my calendar to schedule 15 minutes to talk on the phone or zoom:


As always, make it a great day, and remember, knowledge is power when it comes to securing your financial well-being!