How to Handle Your 401K | Planning and Prioritizing During Every Season

Right now, most individuals who are out working are feeling the loom of a season of transition. It’s possible that you have been feeling this transition for a few years, and you’re not alone. With transitions come questions on your finances within a job, and what stands with your 401K and other work benefits. Read more as we discuss what to do when making these decisions

Should I participate in my company’s 401K plan? 

We get this question often, and the answer always depends on what your employer is offering through that plan.

We always suggest bringing in the plan documents to get looked over first before making a decision, as we are able to help serve as a second pair of eyes to evaluate the benefits and opportunities.

There might be a company match to take advantage of, vesting schedules to be aware of, and investment choices to select. 

When looking at my health savings options, which one should I pick? 

So you're thinking about what other benefits you need from your employer - FSA or HSA?

The most significant difference between flexible spending accounts (FSA) and health savings accounts (HSA) is that FSAs are less flexible and are owned by an employer, while an individual controls an HSA and contributions can stay in the account for years.

Each option has their own set of pros and cons, and deciding on what things are valued for you and your situation will help you in the process of making a decision. For example, a FSA is owned by your employer, while an HSA is owned by you. There are also different qualifications for each option. 

We are able to help guide you through these different options and aid in which will be the best fit for you.

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I am switching jobs - what happens to my 401K plan? 

Let's say you've switched jobs after being there for a handful of years, and have been contributing to a 401K plan... What happens to the 401K that you left behind?

With a move like this, it is important to know where your money is going that was contributed through your previous employer.

In many cases, you have to follow the lead of that employer and work with them to help get control back over your finances and 401K plan.

However, by consolidating that 401K into a personal IRA or Roth IRA, you no longer have to just be “along for the ride” when it comes to what the employer decides to do with their 401K choices. 

One option is moving it into an IRA or Roth IRA, which allows you to have more control over those assets..

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With AO Wealth, we want to make sure you have someone who can help you help yourself to stay accountable and consistent. Our online portal allows you to see your goal in progress and where your finances are in your stage. Money and spending can sometimes feel like it's hard to visualize and manage, so this is a great tool to let you remember your goals, where you started, and where you are headed. 

Advisory services are offered through A.O. Wealth Advisory, LLC, a registered investment adviser.