Recent statistics show the average time a worker spends with an employer has dropped to about 4.6 years. As a result more employees are faced with the decision of moving their money.
This is a very important decision since a mistake could give rise to an unwanted taxable event which could cause a significant tax and potentially a nasty tax penalty.
There are 4 options when leaving an employer, which include:
- Keep the 401k with the former employer
- Roll the assets into an IRA or a Roth IRA
- Consolidate your 401k into your new employer’s plan
- Cash out
You will not want to make these decisions alone. These are critical and require the advice of an experienced professional.
Advising on decisions like these is what Roventini Financial Services, Inc. of New City, New York does. Contact our firm today to learn more about how we can help you.