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.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- EBSA says employer took liberties with retirement funds
- Despite EPA's gender-equity requirements, you do have discretion to set wide salary
- Pay cut may be legit reason to quit, collect unemployment
- Court eliminates one strategy for ending class-action litigation