If you've been laid off, what should you do with your 401(k)? Know that you have options, and watch this week's Arista Advice to find answers to this question.
Question the week is: "Paul, what do I do, if I'm laid off during COVID-19, with my current 401(k)?" For many Americans the switch from employment to unemployment is becoming a reality in the wake of the Coronavirus pandemic.
The current unemployment rate is at 10.4% Here's what you can do with your 401(k) if you are laid off during Coronavirus pandemic:
Number one: Leave your money in the plan if it's a low-cost plan that you currently have.
Number two: Move the funds in the 401(k) plan into an individual retirement account. This can give you more investment options to help benefit you.
Number three: Move the funds into a 401(k) plan at your new job if it's immediately available, and number four: Please do not take a loan if you can avoid it, but if you need to it's understandable in times of crisis to do things that we would say is not something you want to do, but we have to live our lives.
Hope this information is helpful. Have a great week.