Switching jobs is often a great move if you can find a job that pays more, is closer to home, and offers more benefits, but there are often lots of extra things you may have to do after you start working at your new job. One thing you might have to do or you might want to do is to roll your 401k plan over from your old job to your new one. While this is not a requirement when you switch jobs, it often is a good thing to do, but the hard part is knowing how to go about doing this. Here are some tips to help you find a way to get your 401k rolled over.
What rolling over a 401k means
A 401k is a retirement account sponsored by an employer. This means that the company you work for offers the plan. They will invest a certain amount of your paycheck money for you each pay period based on the amount you request, and they may also put money into the account themselves. They choose the management company for the 401k, but you may have the option of choosing what investments your money goes into. When you roll this over, it simply means that you are taking your investment from this employer-sponsored plan and putting it in another 401k plan.
How to do it yourself
You can handle a 401k rollover yourself if you want to. To do this, you would need to choose whether you want to roll the plan over to the plan your new employer offers, or if you would rather choose a different management company to use. You would then need to complete all the necessary paperwork to complete the transaction.
The challenges of doing this yourself
While you have the freedom and option to do this yourself, it is important to know that handling this yourself is not always easy, and you will likely face some challenges. The first challenge will be knowing where to even begin. You may also face the challenge of knowing what 401k plan to roll yours into. If you do not complete the task properly, it could cost you money. This is why most people hire this out when they are ready to roll over a 401k plan.
If you are still not confident that you could roll over your 401k yourself, you should contact a consultant for help. 401k rollover consultants can help you complete this task the proper way and will help you choose the right options for your new account.
For more information, contact a 401k rollover consulting company.
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