If My Company Is Acquired by Another Company, What Happens to My 401(k)?
Posted: March 28, 2021
If your employer is acquired, the fate of your 401(k) plan may depend in part on what type of acquisition it is – asset sale or stock purchase. In an asset sale, the selling company retains responsibility for the 401(k) plan. Employees of the acquired company that stay on after the sale are typically considered new employees of the acquiring company. If the acquisition is...
How to Roll Over Your 401(k)
Posted: March 13, 2021
If you leave your job for reasons other than retirement, you have four options on what to do with your 401(k). You can: Leave it with your former employer Consolidate it into your new employer’s 401(k) plan Cash it out Roll it over into an IRA or Roth IRA. Rolling Over a 401(k) to an IRA IRAs offer more investment options than 401(k)s. IRA fees...
What Happens if I Withdraw My 401(k) Early?
Posted: January 13, 2021
A 401(k) is a company-sponsored retirement plan that gives employees a tax break on the portion of their salary they contribute to the plan. Contributions are automatically withdrawn and invested in funds of the employee’s choosing, and employers have the option to match contributions. 401(k) plans are designed for retirement savings. Early withdrawal of funds carries heavy penalties under normal circumstances. How Soon Can You...
What Happens When You Inherit A 401(k)?
Posted: December 13, 2020
A 401(k) is a tax-deferred, retirement savings account. When a person opens a 401(k), he or she names one or more beneficiaries to receive the remaining funds when the account holder dies. If you have inherited a 401(k), your options will depend on several factors, including your age, the account holder’s age at the time of death, and whether the account holder was your spouse....
How Does My 401(k) Get Invested?
Posted: November 13, 2020
A 401(k) is a tax-deferred, employer-sponsored retirement savings plan that allows you to save and invest a portion of your paycheck. Your employer may contribute matching funds to your 401(k) account. The company may offer a choice of investment options, but you control how your 401(k) money is invested. What Are the Common 401(k) Investment Options? Employees can typically choose from a spread of mutual...