Is your 401k Part of Your Retirement Plan?
At one time, a retirement plan often consisted of a pension. When using a pension as a retirement option, it was the employers responsibility to prepare and pay. Today, pensions are a rarity and 401K retirement accounts have taken their place. Along with taking the place come the responsibility shifting to that of the employee. Employees are left to their own devices to determine where they would like to invest depending on what the benefits plan offers and their particulars such as age or level of risk tolerance. If you were to leave your employer or you retire, you have several options:
- Withdraw the money
- Roll the money into an IRA
- Leave the money with the previous employer, or
- Move it to a new employer