Young professional at work

How to Manage Your 401(K) When You Switch Jobs

In the past, baby boomers and Generation Xers often held on to jobs for 10 or more years. Some professionals stayed with the same company for most of their working lives. The Great Recession changed this for many. Now, people have become more comfortable moving from job to job. Millennials are especially adept at this. They change jobs three times more often than other generations.

Changing jobs introduces a new dilemma for people, regardless of why or how often they do so: what to do with the 401(k) account they had with their former employer. Should they consider taking the cash distribution, or could there be a better choice?

Consider All Options

Here are some options to consider:

The Importance of Research

The right approach depends on a number of factors. Aside from those mentioned above, you should consider the rules at your company as well as longevity. Is the company in financial trouble? What happens to your retirement plan if it goes under? Some employers may also set lower thresholds to allow former employees to leave their retirement accounts behind. Speak directly with the human resources department to get some answers.

Another good source of reputable information is financial professionals. At LPL Financial, our team helps clients to navigate these and other important decisions that impact their economic future. Start working with one of our professionals today.

Sal Bocchimuzzo photo

Sal Bocchimuzzo, CFP®

Vice President, Wealth Management

Email: [email protected]


Kingston & Saugerties

Daniel McDonough photo

Daniel McDonough, CRPC®

Vice President, Wealth Management

Email: [email protected]


Kingston, Saugerties, Red Hook, Rhinebeck & Hurley

CRPC® conferred by the College for Financial Planning

Jason Netrosio photo

Jason Netrosio

LPL Financial Advisor

Email: [email protected]


Woodstock, Highland, Middletown, Fishkill & Peekskill

Dan Toronto photo

Daniel Toronto

Associate Financial Advisor

Email: [email protected]


Port Ewen, Newburgh, Poughkeepsie & LaGrange

Appointments available at any MHV branch location by request.

OR CALL US AT 845.336.4444, ext. 3515

Check the background of the investment professionals associated with this site on FINRA’s Broker Check

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA(Opens in a new window)(Opens in a new window)/SIPC(Opens in a new window)(Opens in a new window)). Insurance products are offered through LPL or its licensed affiliates. Mid-Hudson Valley Federal Credit Union (MHV) and MHV Investment & Retirement Center are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using MHV Investment & Retirement Center, and may also be employees of MHV. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, MHV or MHV Investment and Retirement Center. Securities and insurance offered through LPL or its affiliates are:  

LPL disclosure

Your Credit Union (“Mid-Hudson Valley Federal Credit Union”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay Mid-Hudson Valley Federal Credit Union for these referrals. This creates and incentive for Mid-Hudson Valley Federal Credit Union to make these referrals, resulting in a conflict of interest. Mid-Hudson Valley Federal Credit Union is not a current client of LPL for advisory services.  

Please visit lpl.com/disclosures/is-lpl-relationship-disclosure.html(Opens in a new window) for more detailed information.