How to Manage Your 401K When Changing Jobs
(Black Enterprise) — When you leave your job, whether its voluntary or not, you’ll have to make some important decisions about what to do with your401(k).Should you roll it over? Get an IRA? Leave it alone? Cash it out? Antwone Harris, a certified financial planner with Charles Schwab in Washington, D.C., says there are four options.
Option 1: Roll the money into your new employers plan. If your new employer accepts your previous employer’s 401(k) plan you can simply roll it over. There are no taxes or penalties to do so and the money continues to grow tax deferred.
Myth Buster: Your new employer and previous employer do not have to do business with the same brokerage firm in order to accept the rollover.