Few life events are more stressful than a job loss.
If you or someone you know is 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-ornothing 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 to us at Cornerstone Wealth Management. We can help determine what option is best for your given circumstances.
You also may have heard that the CARES Act waives the 10% early withdrawal penalties on 401(k) plans, giving some account owners up to three years to replace what they took out. Remember, this new legislation may not cover loans unrelated to the COVID-19 crisis.
We are more than happy to provide guidance during this uncertain time. Please reach out to our office with any questions.
Cornerstone Wealth Management
486 NW 2nd Ave.
Canby, OR 97013