We’ve all heard the phrase: “Let your money work for you.” But what does that really mean, especially in today’s unpredictable economy?
At MedPro, we know our healthcare professionals work hard. That’s why we offer a 401(k) as part of your benefits package. But simply having a retirement account isn’t enough. You need to make sure you’re using it wisely. That’s where Sage Personal Finance comes in.
As part of your MedPro benefits, Sage Personal Finance provides tools and guidance to help you make smart decisions with your money, including managing your 401(k).
401(k) Options When Changing Jobs
If you’ve changed jobs or are thinking about it, you have four main options for your old 401(k).
- Explorers may choose to leave their 401(k) with their previous employer, which is often the simplest option. However, it comes with potential downsides. It’s easy to lose track of the account over time, and if your balance is below a certain threshold, your former employer could automatically distribute the funds. On the other hand, some plans may offer low-cost or exclusive investment options that make keeping the account worthwhile.
- Explorers can roll their old 401(k) into their new employer’s 401(k). The main benefit of this option is the convenience of consolidated accounts, retaining strong creditor protections, and keeping the funds accessible through the plan’s loan feature.
- Explorers can roll their 401(k) into a Traditional IRA. This option offers a wider range of investment options and more control. However, you may lose some creditor protections and loan access.
- Cash it out. Upside, you get your money. Downside: Explorers will owe taxes and possibly a 10 percent early withdrawal penalty. More importantly, you’ll lose the potential for long-term growth. Example: Cashing out $10,000 now instead of rolling it over could mean losing up to $100,000 in potential growth over 30 years (assuming 8% annual returns).
Key Factors to Consider
In most circumstances, you’ll be required to take the Required Minimum Distributions (RMDs) from your retirement account(s) by age 73. Withdrawing before age 59½ could result in taxes and penalties. And a 401(k) loan not repaid becomes a taxable distribution. It can be confusing, but it doesn’t have to be. Take advantage of Sage Personal Finance to get expert, unbiased advice and make confident choices about your financial future. You work hard. Be sure your money is working hard, too.
Upcoming Webinars
Want to learn more about personal finance? Don’t miss out on these upcoming webinars.
Retirement Readiness
September 24, 2025, 11:00 am PDT
Make your money last so you can enjoy your retirement worry-free.
Life Insurance 101
October 7, 2025 11:00 PDT
Get the basics on life insurance and how it fits into your financial strategy.