I've been let go from my job, now what!

I've received a few phone calls this month from clients letting me know that they need help with their 401K because they were let go due to the financial effects of COVID on the companies they work for.

Few life events are more stressful than a job loss.

If you are in this situation due to COVID-19, you’ll likely have several questions about job hunting, unemployment insurance, and health care. You may also be wondering, “What should I do with my 401(k)?”  

People leaving an employer typically have four options with their 401(k) retirement plan, but it’s not an all-or-nothing decision. Depending on your situation, it may be possible to engage in a combination of these options:

• Leave the money in your former employer’s plan, if permitted
• Roll the assets over to your new employer’s plan, if one is available and rollovers are permitted
• Roll the assets into an Individual Retirement Account (IRA)
• Cash out the account value

Each choice offers advantages and disadvantages. If you are uncertain what action to take with your retirement accounts, please reach out. Over the years, we’ve found the best financial decisions are the ones that consider all available options.

As always, I am here to help. Give me a call and let's talk about your next steps and let's make sure you are aware of the tax implications of any decision you make.