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When You Change Jobs, Should You Change Your 401(k)?
Content developed by CUNA Brokerage Services, provided by Dwight Lee & Jason Persinger

Job transitions can be stressful. During these periods of change, it is easy to forget one of the most important decisions you have to make: What should you do with your qualified retirement savings, such as your 401(k)?

The consequences of taking your money out rashly may include (but are not limited to) the following:
  • 20% Withholding: Your employer is required to withhold 20% of the total amount to cover any potential federal taxes that you might owe. Keep in mind that you may owe more than the 20% that is withheld.
  • The Tax Man Cometh: You are subject to federal and state income taxes on both tax-deductible contributions and tax-deferred growth.
  • 10% Penalty: Early withdrawal penalties of 10% may apply if you are age 59 1/2 or younger.
Keep Your Retirement Money Working
If you would like to keep more of your retirement savings growing tax deferred and minimize your current tax bill, there are options to consider.
    Consolidate Your Retirement Savings into One IRA
    By transferring your retirement plan to an IRA, you have the ability to consolidate several different IRAs into a single account.

    Move Your Retirement Savings to Your New Employer's Plan
    If your new employer allows it, this may be an attractive option for you.

    Keep Your Retirement Savings in Your Current Employer's Plan
    You might consider leaving your retirement savings in the existing plan even after you have left the company.
Understanding Your Options
Review and discuss your options with an experienced Financial Advisor. Together you can identify a solution that will work for your needs today and throughout your retirement.

Dwight Lee and Jason Persinger are Financial Advisors with MEMBER Financial Services located at NuVision Federal Credit Union. If you have any questions, or would like to provide feedback, regarding the information presented in this article, you may contact Zack Seitz at 714.375.8151 or

Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. FR061021-9127

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