Few life events are more stressful than a job loss.
If you or someone you know is in this situation due to COVID-19, you’ll likely have several questions about job hunting, unemployment insurance, and health care. You may also be wondering, “What should I do with my 401(k)?”
People leaving an employer typically have four options with their 401(k) retirement plan, but it’s not an all-or-nothing decision. Depending on your situation, it may be possible to engage in a combination of these options:
Each choice offers advantages and disadvantages. If you are uncertain what action to take with your retirement accounts, please reach out to us. We can help you consider all of your available options.
You also may have heard that the CARES Act waives the 10% early withdrawal penalties on 401(k) plans, giving some account owners up to three years to replace what they took out. Remember, this new legislation may not cover loans unrelated to the COVID-19 crisis.
If you have questions about what rules apply, you may want to get in touch with your former employer’s human resource team. We're here to help, too, so feel free to get in touch with us.
What should you do with your 401(k) when you leave your job?
May 13, 2020