Key Takeaways
- For some reason in 2023 and early 2024, there has been a wave of layoffs. And once you’re laid off, you have an old 401(k). Now you have options. Do I roll it to my IRA? That’s the most common option. You can also leave it in the company plan if you like. Or maybe you got a new job; roll it to a new company plan. Or take a lump-sum distribution, there are some tax benefits on that. And once you’ve exhausted all of those, then look into the IRA rollover.
- If you keep rolling an old 401(k) over to an IRA, you could have a nice IRA. But if you keep taking it out and spending it and you keep changing jobs, at retirement, you’ll have spent most of it and cost yourself a fortune in taxes.
- If you don’t have an IRA, set one up, but do …
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