Pensinger Financial
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  • What We Do
    • Our Services
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    • 401(k) and 403(b) Set Up
    • 401(k) and 403(b) Rollover
    • Small Business Retirement Plans
    • HCBA Retirement Solution
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401(k) / 403(b) rollover

When you leave your employer and you're cleaning out your desk, don't forgot take your company's retirement plan with you (doing so might actually save you thousands of dollars, too). 

Upon leaving you'll have tough decisions to figure out - how do I find my next job being your most important one. But don't forget about your 401(k) plan as it is probably your single biggest retirement account. So give it the attention it deserves and get it handled properly - your future self will thank you in retirement. If you need help reach out to us and we'll make your 401(k) transition very smooth and simple for you. 

When you and your employer part ways (and it doesn't matter how you left) you have four options with your 401(k). Below is bit more information about each option.

roll it over into an ira

Frankly, this is your best option. You can roll your 401(k) into a new or an existing IRA. This involves minimal paperwork. The biggest advantage is now the money is in your personal retirement account so you will have better and more investment choices, and it might cost you less in fees, too. Less fees simply means more money for your retirement.  

roll it over into your new employer's plan

You can roll it over to your new company’s 401(k) plan if they offer one.  This involves minimal paperwork and now your plan is with your new company so you have everything in one spot and not one plan at your old job and one plan at your new job. The downside is that your new employer might not have the best investment options and/or they might have high fees. A lack of good investment choices can be very detrimental to your portfolio and high fees means less money for you. Plus your plan is at the mercy of your employer.

Leave it at your old employer

You can leave it at your old employer, you don’t have to do anything and you just let it keep going as it was – so that’s easy to do. The downside is the same as above: your old employer might not have the best investment options and/or they might have high fees. A lack of good investment choices can be very detrimental to your portfolio and high fees means less money for you. Plus your plan is at the mercy of your employer.

cash it out

You can take the money out of the plan and get cash, but this will trigger a 10% penalty and you’ll have to pay taxes on it, too.  Unless you really need the money this is a last resort and something you want to avoid.  We do NOT recommend this option. If you are considering this option we strongly suggest you have a conversation with us first.

ABOUT US
A Quick Look
Core Values
Background
What it Means to be a CFP
Code of Ethics
Investment Philosophy
WHAT WE DO
Our Services 
Our Pricing 
401(k) / 403(b) Rollover
Small Business Retirement Plans
​HCBA Retirement Solution
RESOURCES
Client Access
Investment Returns
Helpful Links
Reading Recommendations
Frequently Asked Questions
EXTRAS
Videos
​The Right Way To Invest Blog

Photos
​​That Familiar Voice
DFA Youtube Channel
CONTACT
Lemont, Illinois 60439
630-754-7580 Phone
630-590-9392 Fax

© 2015 Pensinger Financial, Inc