When most employees change jobs, they either cash out previous 401(k) accounts (bad move) or roll them over into an individual retirement account (better).
Very few opt for what may be the very best money move: Rolling retirement funds into a similar 401(k) plan at their new organization. It’s perfectly legal.
Consider explaining 401(k) options to new hires. It may take a little extra paperwork on your part, because you will have to confirm that the funds are coming from another qualified plan.
However, 401(k) transfers can save employees big bucks. Reason: 401(k) fees are as much as 50% lower than those associated with IRAs.
Advice: Ask your fund’s manager for guidance and rollover materials.
- Top 10 things to know about North Carolina Wage and Hour Act
- 10 hot gifts on employees' holiday wish lists
- Wage gap widens between men, women managers
- A few unpaid 'donning and doffing' minutes can add up to penalties worth millions
- Fired sales rep did not return our iPad! Can we deduct its value from his last check?