What Should I do with My Old 401(K)?
Between 2014 and 2016, 41% of people cashed out at least part of their 401k when leaving a job, and 85% of those people drained the balance entirely! And since most people will change jobs several times before retiring, Dustin with Mundorf Wealth Management and Erin Kennedy are breaking down the best (and worst!) options when it comes to your old 401(k):
- Cash it out.
- Leave it with your old employer.
- Roll your old 401k into your new employer's plan.
- Roll your 401k into an IRA.
Cashing out your old 401(k) is rarely the best option. Not only could you be hit with a heavy tax penalty, you're also greatly reducing any future compound interest. If you've recently changed jobs and would like help figuring out what to do with your old 401(k), text or call Dustin at 830-476-2505 or book a free chat on the website by visiting www.LongLiveMyMoney.com
#401k #WealthManagement #Taxes #Retirement