Empowering Your Future: 401(k) and Financial Planning for a Rewarding Career Move

The previous years during the pandemic have been truly unprecedented, characterized by uncertainty and concerns. As we transition back to a semblance of normalcy, the lasting impacts of the pandemic continue to shape our lives.

Beyond the immediate worries for our health and the well-being of our families, few events in our professional lives evoke more stress and uncertainty than a job loss. Whether you’ve recently changed jobs or, like many others, faced unemployment during the pandemic, a series of questions likely weigh on your mind. Among them:

• What’s the next step in my career?
• What resources are available to support me during my job search?
• How does unemployment and healthcare coverage factor in?
• And, though it may be lower on your list but essential, “What should I do with my 401(k)?

 

Individuals departing from an employer, whether by choice or necessity, typically encounter four choices regarding their retirement plans. These include:

• Cashing out the account balance (though this decision warrants careful consideration due to potential tax implications and penalties).
• Leaving the funds in your former employer’s plan, where permissible.
• Rolling the assets into your new employer’s plan, provided such rollovers are allowed.
• Opting to rollover your old retirement plan into an IRA (Individual Retirement Account).

 

Each option comes with its set of advantages and disadvantages, and several key factors should inform your decision-making process.

If you’re uncertain about the best course of action for your retirement accounts, we’re here to assist. Helping individuals make informed financial decisions is our expertise, and we’re ready to guide you through this pivotal transition.