Skip to main content
Podcast Episode 250: Rolling an Old 401(k) into a New Company 401(k)
Created: April 29, 2022
Modified: August 24, 2022

Podcast Episode 250: Rolling an Old 401(k) into a New Company 401(k)

What You’ll Learn:
Starting a new job is an exciting life change that can bring about a lot of fresh opportunities, including the chance to begin a new retirement account with the new employer. But what should you do with that 401(k) from your previous job? We’ll answer that question today along with another that recently came into the show.

Today’s Wisdom:

Starting a new job is an exciting life change that can bring about a lot of fresh opportunities, including the chance to begin a new retirement account with the new employer. But what should you do with that 401(k) from your previous job? We’ll answer that question today along with another that recently came into the show.

What You’ll Learn:

The pandemic has created a lot of turnover across the workforce as people choose to change careers and shift priorities. One of the decisions you’ll face when starting with a new employer is how to manage your retirement account from a previous job.

We had this question come into the show recently with someone wondering whether they should just roll that old 401(k) into their new company plan and take advantage of that option. So let’s talk about that a little bit on this episode of Money Wisdom.

It is true that this is an option you often have with a company 401(k) account, and it might make sense to consolidate them all into one place to help you better manage your portfolio. But one thing that you should keep in mind is that once you put money into that new 401(k), you might not be able to get that money out. It depends on the provisions in that 401(k) on what kind of access you might have.

Here at Johnson Brunetti, we are big fans of flexibility and control. Most times when someone leaves a job, we like to take an IRA and roll that old 401(k) into it. That gives you flexibility and control on how it’s invested and you can always fire us if you want. It’s important to remember that you aren’t the client in a company 401(k) like you would be in your own IRA, the company is the client.

A couple of other factors to keep in mind when making the decision is what will the costs be? Will there be fees associated with transferring the money or moving into a new account? Plus, will you be getting in help or advice in one account or the other? These are just some of the considerations but your financial advisor can help you walk through what’s best for you.

The other question we got recently was what should you do with the extra income that you want to save. This one came from someone working with a tech startup that’s enjoying a lot of success so big bonuses are common and they have already maxed out retirement savings for the year.

Believe it or not, we’d suggest spending some of that money you’ve earned. Buy some things you need or take a trip you’ve been wanting to take. But after that, let’s talk about where to save some of this extra money. Tech is a very volatile industry. When things are going well, it can be a very lucrative position to be in, but things can change quickly in the tech world and there might be some big down years. So are you prepared if that happens?

Setting up an investment account is a great way to set aside that extra income and gives you a could chance to grow your money by 7-10%. That might not seem like a lot but it can really add up over time and gives you the safety of being able to access it if you ever need the money.

As always, we encourage you to take advantage of our Money Map review process to answer questions like these and help get your financial future on the right track.

0:20 – Fact on IQ during stress  

2:05 – Mailbag question on what to do with extra savings

4:18 – Mailbag question on rollover 401(k)

6:18 – Money Map retirement review

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

Resources by Topic

Subscribe to Our YouTube Channel

Share

Related Resources

Podcast Episode 402: How Often Should You Meet with Your Financial Advisor?

A good relationship between a client and their financial advisor relies on clear communication and regular check-ins to ensure everything is on track. In this episode of the Money Wisdom podcast, Ja…

Should I Consolidate My Multiple 401(k) Accounts?

If you’ve contributed to multiple 401(k) or other employer sponsored plans over the years, you may be wondering about today’s question, is it time to roll your old accounts into an IRA? In this week…

When Should I Consider Borrowing Against My Assets?

Welcome back to the Money Wisdom Question Series. Today’s question is, when would it be beneficial to borrow against my assets? While there are ways to borrow against assets such as a vehicle, we’re…

FAQ on Retirement Planning

At Johnson Brunetti, we are committed to helping you navigate your financial concerns as you approach one of the most complex yet rewarding phases of your life. This week, Joel Johnson, CFP®, joins…

Your Retirement Questions, Answered

At Johnson Brunetti, our valued listeners and viewers frequently reach out seeking guidance on a variety of retirement planning needs. Today, financial advisor David Shapiro joins Better Money Bosto…

Podcast Episode 401: Understanding Long-Term Care Insurance Options

Long-term care planning is a significant concern for individuals approaching retirement because it’s an expense most people aren’t prepared for. Trying to prepare for it with insurance isn’t che…

Podcast Episode 400: Ways to Lower the Taxes on Your RMDs

Preparing for required minimum distributions (RMDs) can be quite unsettling when you know withdrawals are coming and the IRS will be waiting. In this episode of the Money Wisdom podcast, we’re g…

Podcast Episode 399: The Importance of Financial Communication in Marriage

Financial planning is an essential aspect of life, but every family handles their money a little differently. The Money Wisdom podcast tackled a common question: what happens when one spouse han…

Podcast Episode 398: Should You Switch to a Healthcare Plan with an HSA?

A health savings account can be an incredibly powerful tool for tax-advantaged savings but not every health plan includes that option. Is it worth switching your plan for one that allows you to cont…

Podcast Episode 397: What’s the Average Age People Retire?

Most people want to know how they stack up to other people as they approach retirement, which is why people often ask about the average age most people decide to retire. We work with people across d…
    Back to top
    Our Locations
    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Skip to content