How to maximize 401(k) match between switching jobs

Asked by: Brian Krueger

If your job offers a 401k, consider maximizing your employer’s matching contribution to that, and then put additional savings in an IRA (Roth or traditional depending on your income and tax situation).

Does your 401 K change if you switch jobs?

A direct 401(k) rollover gives you the option to transfer funds from your old plan directly into your new employer’s 401(k) plan without incurring taxes or penalties. You can then work with your new employer’s plan administrator to select how to allocate your savings into the new investment options.

How do I maximize my 401k employer match?

The best way to take advantage of a 401(k) match is to set up payroll withholding. If your employer will match up to 6% of your salary, make sure to direct at least 6% of your paycheck to the 401(k) plan.

Is it better to roll your 401k to new employer?

Move Your Old 401(K) Assets Into a New Employer’s Plan

It can be easy to pay less attention to your old retirement accounts, since you can no longer contribute. So, transferring old 401(k) assets to your new plan could make it easier to track your retirement savings.

Is 4 percent 401K match good?

The matches range from less than 1 percent of pay to more than 7 percent of pay. Most employers require workers to save between 4 and 6 percent of their pay to get the maximum possible match.