The average worker in the U.S. today will hold 10 different jobs before the age of 40, according to the Bureau of Labor Statistics. And that figure is expected to grow in the years ahead. If you’re among the 64% of Americans with access to a defined contribution retirement plan—commonly known by its IRS designation as a 401(k), or in some cases a 403(b) or 457(b)—through your employer, this means you’ll likely face this decision several times throughout your life: What should I do with my existing plan?
When you’re leaving a job with a retirement plan—or considering what to do with an older account you’ve held onto—you have 4 options:
- Roll over to your new employer’s plan. If you’re moving to a new job that offers a retirement plan and allows you to roll in existing assets, it’s worth getting the details before you decide—you may find extremely low