Leaving Your Job? What Happens to Your 401(k)?

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It’s quite possible you will change jobs at some point. When you do, what will happen to your 401(k)?

You could simply cash it out, but if you’re younger than 59 ½, you’ll owe taxes, and probably a 10% penalty, too. And just as important, you’ll be depleting money that should go to your retirement.

You might be able to keep your 401(k) with your old employer or move the money to your new employer’s plan. In either case, you won’t face an immediate tax hit, so your decision may depend on what sort of investment options are in your old and new plans.

Finally, you could move your 401(k) funds into an IRA. Your money can continue to grow tax-deferred, and you’ll have a wide array of investment choices.

You’ll want to review all your choices and consult with your tax professional before making any decisions. Do whatever you can to preserve, and hopefully grow, your 401(k) assets. You’ll need these resources to help fund the retirement lifestyle you want – and deserve.

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Dylan Hales
I'm a native North Carolinian, who grew up in the eastern part of the state. My folks exhibited and instilled many of the values that I still hold close to today. I had the opportunity to earn a bachelors from NC State, which is where I met my wife. We married shortly after she graduated in 2016. She grew up in this area, so we moved back to the Wesley Chapel area so we could be close to her family. Folks here have been more than welcoming and have made it feel just like home (minus the eastern NC BBQ).

People often ask what I like to do when I'm not at the office. That mostly depends on what time of year it is. During the spring and summer I like to work on my garden. During the fall and winter I love keeping up with NC State football and basketball. We also have two rescue dogs who like to explore the state with us.

Since I've been in Wesley Chapel, I've noticed that most folks just like me. We're all from somewhere and we've all come here following the things we love. I want to understand what those things are for you, and help get you there.