Take Your Money With You: 5 Reasons To Rollover Your 401(K) When Leaving Your Employer

Termination of Employment and layoff concept, Businessman holding Termination of Employment Form in… [+] paper brown envelope. photo credit: Getty Getty For employees, the end of the year doesn’t always ring in holiday cheer. For many employees, especially here in California where I’m based, longtime workforces know all too well that the year’s end also…

Take Your Money With You: 5 Reasons To Rollover Your 401(K) When Leaving Your Employer

Termination of Employment and layoff concept, Businessman holding Termination of Employment Form in… [+] paper brown envelope. photo credit: Getty
Getty

For employees, the end of the year doesn’t always ring in holiday cheer. For many employees, especially here in California where I’m based, longtime workforces know all too well that the year’s end also means layoff season.
Just this week I was speaking to an employee group about workplace optimism, when an employee pulled me aside afterwards and asked if we could set up some time to discuss a “package offering.”
The “downsizing” trend seems to be picking up speed, at least here in California. The state’s Employment Development Department reported that, in the June quarter, 253 companies filed government-mandated “WARN Act” layoff notices,  impacting 18,875 employees around the state. Over the past year, that’s 38% more planned cuts hitting 13% more workers.

For years I’ve worked with employees from companies such as SBC, Boeing, Dreamworks and many others and helped their employees navigate the move from employee to free agent from a financial planning standpoint.
One of the most important decisions anyone facing a layoff or considering taking a buyout involves the 401(k), the retirement savings plan that has largely replaced traditional pensions in most companies.

If you are leaving your company for any reason, you will need to decide what to do with the 401(k) you amassed while you were
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