What Are Your Options for an Orphaned 401(k)?
If youโve changed jobs or your employer has closed, you may have a 401(k) account with a former employer. Itโs important to review your options carefully. Generally, you may:
- Leave your money in your former employerโs 401(k) plan, if allowed by the plan administrator
- Roll your balance into a new employerโs 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.
Why Choose F&M Financial Services for Retirement Planning?
Whether you live in Broadway, Harrisonburg, Staunton, Winchester, or nearby, F&M Bankโs 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 youโre 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