If you want to be ready for retirement you have to get started saving as soon as you can in an effort to accumulate the financial resources that you will need to enjoy your golden years in comfort.
A 401(k) plan is a very good start, and most of us are offered an opportunity to participate in one when we first begin our careers. It is definitely a good idea to contribute into the 401(k) plan that is offered at your place of employment, especially if the employer is willing to match your contributions.
One question that often arises about 401(k) accounts is this: What happens to your investment in the event of a job separation? The short answer is that it is up to you.
In many cases you may be able to simply keep the account, but you may find that access to administrative assistance is limited. Expenses involved in administering the account that were previously handled by your employer may be passed on to you as well.
Another possible course of action that you could take would be to cash out the account. While this is allowed, you would have to pay a 10% penalty along with a 20% tax.
Perhaps the best solution if you want to keep your long-term retirement plan on track would be to roll your account over into an individual retirement account or the 401(k) plan at your new job.
Being able to adapt to changing circumstances is a very positive quality as you are planning for the future. The ideal scenario is to develop a relationship with a good South Carolina financial planning lawyer who you can always consult with as time goes on and unexpected events present themselves.
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