Lotto fever is back with ‘The Mega Millions’ jackpot over $502 million!!! What would you do with your lottery winnings besides sharing a portion with us ACCOUNTableCouple for giving you all this sweet advice?
Have you ever visioned yourself winning the lottery and driving off into the sunset? I’m sure we all have but I bet no one has thought about how an unexpected fortune could quickly turn into a nightmare!
A job change can be very exciting but did you know that it can also impact you financially? Did you forget about a 401(k) at a previous employer before switching jobs? We have experienced this dilemma first hand. There are a few options available for your 401(k) when switching jobs.
What should you consider before switching jobs?
1. Are you fully vested and what the heck does this mean?
Fully vested (in this example) is your right to keep 100% of the funds that your employer contributed to your 401(k). If you are close to being fully vested it might be worth holding off on switching jobs until you are 100% vested. This could have a significant impact on your retirement future. Why give back free money that you have earned?
2. Don’t forget about your current employer 401k plan!
Make sure to contact your human resources department and ask for clarity. It is easier to deal with the paper work now than after you are terminated. Either your employer or your plan administrator should have a ‘Termination Distribution Form’. No one else is going to care more about your retirement than you are! Trust me!