Q.

Don’t I still have a 401(k) plan from my old job?

A.

Don’t worry, your old 401(k) is still there if you haven’t touched it. You can keep it with your former employer if you want. But you do have other choices that may be better for building wealth in the long run. Whatever you do, resist the temptation to cash out. Keep your money in a tax-deferred retirement plan so it continues to grow tax-free.


Here are your options in a nutshell:

  • Leave your balance with the old plan.

  • Rollover to your new employer’s 401(k) plan.

  • Rollover to an IRA (Individual Retirement Account).

  • Cash out your 401(k). (not recommended)

Each option has its advantages and drawbacks. To learn more and see which option is right for you: