What to Do With My 401(k)? I’m Changing Career Paths!
When a company hires you, you’ll most likely receive a 401(k). But you may be concerned about what will happen to these accounts if you change your career path. According to the Bureau of Labor Statistics, the average American changes jobs every four years. So, that means you could change careers several times throughout your life. So, how can this impact your 401(k)? Here are four options to consider. OPTION 1: LEAVE YOUR 401(K) WITH YOUR FORMER EMPLOYER. This will be a great choice if your employer has low fees attached to your 401(k) and quality investment options! However, leaving money in an old account has some cons. For example, you can’t add more money to the account or take out a 401(k) loan. OPTION 2: ROLL OVER YOUR 401(K) INTO YOUR NEW EMPLOYER’S PLAN. If your new job provides 401(k)s, rolling over your old 401(k) would be the best choice if your new employer has more investment options and low fees. Many people choose this route so they don’t have to manage multiple accounts. OPTION 3: CONSOLIDATE INTO AN IRA. An IRA gives you more control over managing your money and tends to have fewer restrictions than a 401(k). You can choose from two IRA options: a traditional IRA and a Roth IRA. If you choose the former, then your contributions are taxed when you
take money out during retirement. If you decide to go with the latter, you will pay taxes on your contributions now to avoid being taxed during retirement. OPTION 4: CASH OUT YOUR 401(K). Cashing out your 401(k) is the easier option but also the least beneficial. If you decide to cash out, you will be taxed and have an early withdrawal penalty. These penalties can go up to 10%, which is a big chunk of money you could use for other purchases. Because everyone has different goals and situations, it’s best to consult a financial advisor. You want to ensure you thoroughly understand each method’s pros and cons so you can pick the most beneficial option for you, your family, and your financial goals.
If you or someone you know is unsure about what to do with old 401(k)s, please allow DuPont Wealth Solutions to assist you. We will be happy to outline your options and help you find the best solution for you.
SUDOKU
SALMON CROQUETTES WITH DILL SAUCE
Inspired by Epicurious.com
This dish is light and refreshing, making it perfect for spring! The crispy salmon patties pair perfectly with the cool dill sauce dolloped on top.
INGREDIENTS
1 1/2 cups plain yogurt or fat-free sour cream
1 large white onion, finely chopped
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1/4 cup Dijon mustard
4 large eggs, beaten
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6 sprigs fresh dill, chopped 2 14.75-oz cans salmon packed in water 4 celery stalks, finely chopped
1/2 tbsp salt 1 tbsp pepper 2 tbsp olive oil
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DIRECTIONS
1. In a small bowl, whisk together yogurt, Dijon mustard, and dill to make the dill sauce. Set aside. 2. Drain the salmon, then remove and discard the bones and skin. In a large bowl, mix the salmon, celery, onion, eggs, salt, and pepper. Form the mixture into 8 patties. Coat a medium skillet with olive oil and heat it over medium-high heat. Cook the patties until browned on both sides, about 5 minutes per side. 3. Put a dollop of the dill sauce on top of each patty and serve.
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