You may be asking yourself - what do I do with my 401(k) plan now that I am changing jobs? Mentioned below are some questions and answers to think about.
You could rollover your old 401(k) account into your new employers' 401(k) plan and resume contributing to it.
Benefit
This would consolidate your accounts which could be easier for record-keeping purposes.
If your new employer's plan allows you to take a loan against your account, you would be able to borrow based on your overall vested account balance. (Check with your employer for specifics.)
Possible Disadvantages:
The process could take a little while.
New employer's plan does not offer a range of investment choices
You could keep your old account and start another 401(k) account with your new employer's plan.
Benefit
The new plan may offer different investment options, which may give you more investment diversification
Possible Disadvantages:
You would not be able to take out a loan against money you still have invested in your old employer's plan.
You would have to keep track of two separate accounts.
You could directly roll your old 401(k) account to an individual retirement account (known as an "IRA") and start a new 401(k) account with your new employer.
Benefit
Through an IRA, you may have even greater choice for investing your money.
We would personally assist you in filling our your paperwork and the process from start to finish.
Possible Disadvantages:
You would not be able to take a loan from any money you invest in an IRA.
You would have to keep track of two separate accounts.
Contact me if you would like to discuss various options available to you!