When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Will you go back to work for your previous employer or do you plan to work part time for your old employer in the future. 

I had a client who retired recently...I use the word retire loosely, because she is actually continuing to work for her old employer, she has just massively scaled back her hours and responsibilities for her old employer. 

This is not uncommon. A lot of people go back to work for previous employers, so if that’s you and you have a 401k parked at your old employer, it may be easier for you to leave your 401k where it is, so you can contribute to it in the future without starting over from scratch with $0 in the plan. 

Keep in mind, your employer will likely have restrictions on whether or not you can contribute to the plan and receive matching dollars if you are part-time. So be sure to find out what those annual hours requirements are if you’re working part-time, and see if you can still contribute to the plan.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip.

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