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.
As one of the world's largest investment managers, we've helped investors succeed by remaining true to our values and approach. We believe in a distinctive way of managing money, an emphasis on research, a long-term view and the recognition of the power of relationships.
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 mutual 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.
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.
Check the background of these investment professionals on FINRA’s BrokerCheck.
Return to Job change
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
American Funds Distributors, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.