Understand Your Options : ClearPath Wealth Strategies | Frisco, TX

Understand Your Options

So, you have a 401(k) from a former employer - what should you do with the money now?
You have a few options to manage the assets, and we can help you decide what’s best for you.


Roll over to an IRA or “Roth IRA” with ClearPath

If you want to maintain your tax-deferred growth opportunities and consolidate your retirement accounts, this is a great option for managing your old investments. We offer a broad range of investment opportunities and personal account management, so your wealth has the opportunity to grow with little hassle on your part.

Roll over to your new workplace plan

If your new employer offers a 401(k), you have the option to transfer your assets to this new account and maintain your tax-deferred growth opportunities. Keep in mind that your new employer may impose a waiting period, and that your investment options will vary depending on the plan.

Keep your old employer’s plan

Some employers allow you to keep your old 401(k) with their plan. In this case, your assets will continue to accumulate tax deferred as they would in a new account, but you won’t be able to contribute money, which minimizes your growth potential.

Cash Out

You don’t have to keep your assets in an investment account at all—but if you withdraw your assets before age 59 ½, you could be subject to a 10% withdrawal penalty. You’ll also have to pay state and federal taxes on the distribution amount, and this option, of course, eliminates the growth potential offered by an IRA.