Changing Jobs With a 401(k)

Video Transcript

"My name is Phillip Beningoso and I am an investment professional and I am going to be discussing how to change jobs with your 401K. Now congratulations you just accepted a more exciting position with a higher salary. Now it's time to deal with your 401K plan. If you are under 59 and 1/2 years old when you switch jobs you need to play by some very specific rules to avoid losing a good chunk of that retirement nest egg to the federal tax or the IRS. Now there are two options to consider transferring your 401K plan, one is to a new employer and one is to an IRA rollover. First you can transfer your old 401K into a new employer's plan. The most important thing to remember here is that a trustee to trustee transfer. The check cannot be made out to you it must be made out to the other plan. Secondly your option as an IRA rollover at a brokerage firm, mutual fund company or the like. Why to consider this option? Now maybe your new employer doesn't have a plan or maybe you just don't like the investment choices from that new plan. The information provided here is for personal information only and should not be considered an individualized recommendation or personalized investment advice. Any investments or strategies mentioned here may not be suitable for everyone. My name is Phillip Beningoso and I'm an investment professional."