New Job? Don’t Forget About Your 401(k)

Starting a new job is a big milestone – one that comes with excitement, and at times, a bit of stress. With so much on your plate, it’s easy to overlook the financial details that come with a career change. However, taking time to review your retirement savings is an important step to ensure your long-term goals stay on track.

Here’s what you should keep in mind when it comes to your workplace retirement plans:

Your New Employer’s Retirement Plan

One of the first things to check when you join a new company is whether they offer a retirement savings plan, such as a 401(k) or 403(b). These plans provide an excellent opportunity to continue building your retirement nest egg.

If your new employer does offer a retirement plan, you’ll want to decide how much you’d like to contribute. For 2025, you can contribute up to $23,500 if you’re under 50. If you’re 50 or older, you can take advantage of an additional $7,500 catch-up contribution.

Many employers will also contribute to your retirement account, often by matching a portion of what you contribute. For example, they may match up to 6% of your salary. So, if you contribute 6%, the company will also contribute 6% – essentially giving you extra savings for free! Even if you’re not able to contribute the full amount, aiming to contribute enough to get the full match is a smart place to start.

Once you’re enrolled in the plan, you’ll also need to select your investments. Typically, you’ll have a range of mutual funds or other options to choose from, or your contributions may default into a target date fund based on your expected retirement age.

Keep in mind that some companies have a waiting period, often up to six months, before you can start contributing to their plan. Use this time to learn about the plan’s features and think through your savings strategy.

What to Do with Your Old 401(k)

If you had a retirement plan with your previous employer, you have several options for what to do with those savings:

• Roll it into your new employer’s plan: If your new company’s plan allows rollovers, consolidating your accounts can make it easier to manage your retirement savings in one place.
• Transfer it to an IRA: Rolling your old 401(k) into an Individual Retirement Account (IRA) can give you more control over your investments and potentially access to a wider range of investment choices. Reach out if you’d like assistance with setting this up. You can also do so on your own here.
• Leave it where it is: You may choose to keep your old 401(k) where it’s currently held. This can be a simple choice, but it’s important to review the account’s fees and ensure the investment options still align with your goals.

Each option has its own pros and cons, so it’s important to weigh your choices carefully based on your financial situation and long-term goals.

Final Thoughts

Every company’s retirement plan is different, and there’s no one-size-fits-all approach. If you’re feeling unsure about what’s best for you, whether it’s deciding how much to contribute, which investments to choose, or what to do with an old 401(k), consider speaking with a financial advisor. They can help you make informed decisions that align with your personal goals and keep your retirement savings on track.