It's no secret that people are changing Jobs more frequently than ever before But what does switching jobs mean for Your retirement plan joining me in Studio 57 is CBS News business analyst Jill slesinger so I was actually just Looking at my account last night oh good For you which I don't do a lot okay Because it stresses me out but I have my 40K for my old job and I'm wondering What am I supposed to do with this well First of all we know that people are job Jumping so much more now and I feel like It's these poor orphan retirement Accounts scattered all over the place so You might think well what's the Difference I'll just leave them there But you're not paying attention you Don't really follow the Investments Unless it's in an active plan when you Leave a job you've got a bunch of Choices you could leave your money where It is you can have it stay in the old Plan if they allow it you can move it to Your current 401k plan so you can have a Direct rollover it goes hey old 401K go Into the new 401K great you can also Take the money that was in the plan and You can roll it into an IRA rollover Account now if you do that you got to Pick where you're going to house the Account what investment company or bank Or financial institution and there then There is the dreaded horrible choice of
Cashing it out yeah and I just want to Point out to everybody please don't cash Out those accounts because often times If you're under the age of 59 and a half You'll pay you'll pay a penalty you'll Have to pay taxes it could you could see Basically half the money disappear with That one Yeah it would be shortsighted um all Right so let's talk about the pros and Cons for each thing so keeping it there What are some pros and cons with keeping It with your old company look I mean you May have a plan that is amazing you Might have really cheap investment Options in that plan that's great um as Long as you can make changes pretty Easily and you're going to pay attention To it that that's fine it it doesn't Really matter um I think that the Advantage of moving it into your current Plan is essentially that you're going to Monitor it a little bit more in real Time now the idea of moving it into an IRA account there's one little bit of Protection that you lose um you may Recall that when OJ Simpson lost this Big civil case there was huge fines and Money that was levied and people would Say but they couldn't touch his Retirement money that's because his Money was in his old NFL 401k plan and Those plans are protected against Creditors so when you leave your money
In a 401k account or any money that's in A 401k account it is excluded from any Civil litigation claims once you roll it Into an IRA then it's subject to that Think you're going to get sued don't do That exactly but you know this is only a Few minutes so we really can only go Into so much detail but what about Somebody like me who still doesn't quite Know where to go where can I go for more Information or to really really decide What's best for me I'm going to just Make the decision for you okay roll it Over what's the big deal like as long as You have a plan that's decent I happen To know the plan here is a good plan but Like honestly I just feel like if it's In the plan where you are currently Working it's easier to manage you're Going to pay attention to it it's a Simple uh it's a simple solution to what Can often be a complicated decision can You just make all my decisions for me ABS a financial should I have dinner Happy Jill on money just go right there Jill thank you
