If the balance is below a certain threshold, like $500, the plan custodian may automatically cut a check for the balance. However, outside of this situation, it’s possible to leave the money in the plan indefinitely.
|"If you pass away, your beneficiaries will need to file death-benefit claims with your retirement contract custodians. Will they know you have a 401(k) plan?"|
Things to consider if you leave the money in the old 401(k) plan include any inconveniences that may come with working with the former employer. First, if you ever want to change the product or access the money for any reason, navigating the old employer’s 401(k) platform, and possibly the human resources portal, may be challenging.
It could also create a problem for your beneficiaries. If you pass away, your beneficiaries will need to file death-benefit claims with your retirement contract custodians. Will they know you have a 401(k) plan?
For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/401k-rollover-strategies-ebook-offer
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