What should I do with my old 401k?
With any type of job change, many people often forget one vital task – transferring their 401(k). This may sound complicated, but we’ve broken it down into a few steps:
Compare plans. Contact your old company’s plan provider for more information on your current plan. Also connect with a representative at your new company who can tell you more about the new 401(k) offering. Review the investment options and expenses for each plan to determine which is best.
Make your choice. You can keep your 401(k) with your old employer, roll it over into your new employer’s plan, or roll it into an IRA account. Note that the decision may be made for you based on how much money is in your account. For example, accounts with less than $5,000 are typically required to be rolled over into a different account.
Rolling it over. To move your 401(k) to a new provider, contact the 401(k) administrator at the new company, or your IRA provider to initiate the process. The money from your old plan will either transfer into the new account directly or you will be sent a check made out for the new address. If you receive a check directly, you will need to deposit the amount into a 401(k) or IRA within 60 days or risk associated taxes or penalties.
We know all of this can be confusing, especially when you factor in some of the restrictions and regulations. If you have any questions or need assistance walking through this process, know that we are always here to help. Feel free to reach out to us at 716-445-7465 or email info@buffalofirstllc.com.
