Financial Intel Monthly

Leaving Your 401(k) With Your Previous Employer

Jun 20, 2020 12:45:00 PM / by The Retirement Group

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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?" man looking at horizon

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.

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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

 

This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

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