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But Pastor invoked the old adage that Great power comes with great responsibility.
For some employees, Pastor noted that setting up a 401(k) is a one-and-done affair.
They can choose a contribution rate and pick an investment, typically aself-managing target date fund.
But rolling over a 401(k) takes effort and planning.
So how can this be avoided?
For most, rolling into an IRA is the best approach, Klesinger said.
This allows them control over investment options and usually lower fees.
The key is to do a direct rollover to avoid the 20% withholding tax.
As long as the check is made out to thenew IRA custodian, no taxes are withheld.
An IRA provides more investment flexibility and control, Blain said.
For most, a rollover IRA is the best approach.
With good planning, those 401(k) balances can provide income for life after retirement.
But bad decisions early on can slash that nest egg permanently.
Being aware of your options and other factors can make a big difference.
Many brokers also offer tools to narrow down your options and make the decision easier.
And you’re free to always turn to aqualified financial advisorto help.
Remember to keep calm and carry on.
Your retirement is counting on it, Pastor said.
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