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For that matter, companies could go out of business entirely or declare bankruptcy.
But where does that leave you and your retirement funds?
What should you do if your 401(k) plan disappears in a puff of smoke?
You have a few options at your disposal.
Your ex-401(k) administrator should offer a simple way to transfer funds to an IRA.
jump in or contact your IRA brokerage service for transfer instructions.
Its truly that easy.
I generally prefer IRAs because they provide an individual with many more options for investing.
You could pocket it and go put it all on red in Atlantic City.
Doing so comes withseveral nasty consequences, aside from the loss to your nest egg.
Hayut added that the IRS comes after you for more than just the unpaid tax balance.
Now is a good time to reconsider whether you should invest through a Roth account instead.
They can provide advice for minimizing your tax burden, and help you spot any costly errors.
As a final thought, Roth IRAs offer far more flexibility than other retirement accounts.
They come with flexible options for withdrawing funds penalty-free, since youve already paid taxes on them.
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