Roll Over the Money
Many people don’t know that you have the option to roll your 401(k) money from a former employer over to an IRA. That, sadly, means that a lot of seniors will get a check.
There are two differences between rolling over and checks. Firstly, the latter options will require taxes, since the check will be considered a form of income. Secondly, if you roll your money over you’ll actually gain more investment options.
So if you’re about to make a career change make sure your current employer doesn’t cut you a check if you want to avoid taxes on the money you’ve saved up so far.
