Many employees only consider what to do with their 401(k) plans after leaving an employer, but you may have the option to roll over your retirement savings into an IRA while still working at your current job. Deciding whether or not to transfer a 401(k) to an IRA while still employed depends on your employer’s plan and investment goals.
What Are My 401(k) Options When Leaving an Employer?
Many employers offer their employees 401(k) plans, whereby employer contributions match those of the employees. If you have an employer-sponsored retirement plan, you likely have a 401(k).
Employees leaving their employers have several options for handling retirement plans. Your current employer may have a 401(k) sponsor that allows you to leave the money in the current plan. If not, you must cash out the account, transfer the assets from your former employer’s plan to a new employer’s plan, or roll over the money to an individual retirement account (IRA)….