A job-hopper’s guide to 401(k) rollovers
by admin on Jul.28, 2010, under Uncategorized
USA TODAY, September, 2005 by Kathy Chu
With the first of the baby boomers closing in on retirement age and many workers changing jobs every two to three years, an increasing number of investors are grappling with whether to leave money in a 401(k) plan, roll it over into an IRA or cash out.
It’s an important question because for many Americans, the largest chunk of their nest eggs will come from company-sponsored retirement plans.
What you decide to do with your 401(k) funds when you leave a job will be based on your financial circumstances, your investment needs and the transaction’s tax consequences. Some issues to consider:
Taking the cash: The temptation when you leave a job may be to use those savings to satisfy short-term spending urges, even if doing so will mar your long-term retirement…
