What should I do with my 401(k)?
You can keep your retirement assets in your former employer’s 401(k) plan and call it done. You’ll always be able to access the money in the future. But out of sight, out of mind?
If your new employer provides a 401(k) plan, you could be allowed to roll over your previous account into the new one. Then you’ve got it all in one place.
A “rollover” is when you take money from one retirement plan or IRA (individual retirement account) and move it into another retirement plan or IRA. By rolling your retirement savings into an IRA, you continue to enjoy tax-advantaged growth potential.
If you really need it, you can take money from your 401(k). But try to avoid this move if you can. Cashing out could leave you with a lot less in retirement. You may have to pay taxes and penalties, and you'll also be losing the tax benefits that come with a retirement plan account.
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Capital Group offers a variety of investment options to help you pursue your objectives — including American Funds, one of the largest mutual fund families in the U.S.
Your financial professional can tell you more about American Funds. Or, you can purchase our funds yourself through an online broker.
Whether you are collaborating with a financial professional or figuring out your own finances, these questions can help get you started.
What are the tax implications of cashing out my 401(k)?
How do the expenses of my previous employer’s plan compare with the new one?
How do I choose from the investments offered in my new employer’s 401(k) plan?
What type of IRA is right for my situation?
A financial professional can work with you to define your goals and create a plan to help make them a reality. From establishing a budget to selecting investments to riding out market shifts, a financial professional can help you make decisions based on your specific situation.
Our locator tool can help you find professionals in your area.
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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