It’s tough enough when you lose your job to think about anything but finding a new job, let alone searching out ways you can do a 401(k) rollover. Luckily, there are some options you have when and if this does ever happen to you. Here are some things you should consider when you are rolling over your 401(k) to a new employer.
First of all, congrats on finding a new job in this market, that’s not an easy task. Now you need to think about your new plan and the options that come with it. It doesn’t matter how much money you have in your 401(k), you will be able to transfer that money to the new 401(k). There are no charges or fees when you choose this option which makes finding a job more appealing.
The bad thing about rolling over a 401(k) into a new employer is that you are bound by the new investment options of the new employers 401(k) management. You may have had more options in your old account than this new one. Also, if you find a job with a smaller employer, the fees on the 401(k) may be higher – I’m talking about the investment management fees. So it all depends on who your new employer is and the options of that new 401(k) plan.
If you take these things into consideration when looking and choosing plans in your new 401(k) you should be fine. The fees may be higher in some cases, but maybe they have better investment options – you never know. It’s important that you set up a meeting with a financial advisor to make sure you are aligning your goals with the right investment decisions.