401(k) & Orphaned 401(k) Options

401(k) Plans & Orphaned 401(k) Plans

At F&M Wealth, we help individuals and businesses across the Shenandoah Valley navigate important financial decisions, including managing their 401(k) retirement savings. This includes support for orphaned 401(k) accounts – retirement plans left behind after a job change or company closure.

What Is a 401(k) Plan?

A 401(k) plan is an employer-sponsored retirement savings account that allows eligible employees to contribute a portion of their wages for retirement. Plans often include both traditional (pre-tax) and Roth (after-tax) contribution options, and many employers offer matching contributions based on plan terms.

Our Financial Services team, including financial advisors through Osaic Institutions, Inc., can help you understand:

The difference between pre-tax and Roth contributions
Employer matching rules and vesting schedules
Distribution guidelines and tax implications
Investment considerations and plan options

What Are Your Options for an Orphaned 401(k)?

If you’ve changed jobs or your employer has closed, you may have a 401(k) account with a former employer. It’s important to review your options carefully. Generally, you may:

Leave your money in your former employer’s 401(k) plan, if allowed by the plan administrator
Roll your balance into a new employer’s 401(k) plan, if you have one and it accepts rollovers
Roll your 401(k) into an Individual Retirement Account (IRA) to maintain tax-deferred growth
Cash out your 401(k) (this may involve taxes and potential penalties, depending on your age and circumstances)

Each option has benefits and considerations, including potential differences in fees, investment choices, tax treatment, and access to funds.

Our team is available to discuss these options with you so you can make an informed decision that fits your financial goals.

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Why Choose F&M Wealth for Retirement Planning?

Whether you live in Broadway, Harrisonburg, Staunton, Winchester, or nearby, F&M Bank’s local Wealth Management team is committed to providing personalized service with deep roots in our community. We take the time to help clients understand their choices so they can decide what works best for their unique situation.

If you’re ready to review your 401(k) or orphaned 401(k) options, consider scheduling a no-obligation conversation with Calan Jansen, Financial Advisor with Osaic Institutions, Inc