Retirement expert Arwen Becker joined us to talk 401(k) plans. The coronavirus crisis has led to an unprecedented number of layoffs across the country. If you’re one of the many workers whose job has been affected, you have a lot on your plate right now.
One decision you don’t want to let fall through the cracks is the choice about what to do with your 401(k). If you’re leaving your job, you have three primary choices, only two of which are good ones.
1. Keep the money where it is
In most cases, leaving your job doesn’t mean your 401(k) has to move. While you won’t be able to contribute to it through paycheck withdrawals anymore, you should be able to leave your money invested right where it is.
Keeping your money with your current employer can be smart for a couple of reasons. You don’t have to sell any of your investments (important since the market is really volatile right now). You also don’t have to pay any fees associated with a rollover of the funds, which some 401(k) plans charge when you move money out.
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