401(k)

In 2002, I began my banking career in earnest. I had worked as a bookkeeper for years during college and as a head cashier during high school, but I was honestly unprepared for the finance world. I didn’t know what a 401(k) was. I didn’t know what a mortgage entailed. I didn’t know a lick about the stock market. I was a blank slate, ready to learn everything about the finance world.

Recently, my husband switched jobs, and in an effort to create financial balance among his multiple retirement accounts, he attempted to roll his two outstanding accounts into his newest job's 401(k).  Both of the original accounts were denied rollover, so we had to investigate the 401(k) rules to determine our best strategy.  Let's look at what I found.

What's a Rollover?

All of us would like to have a feeling of security and control over our finances. So, what’s keeping us from getting there? The idea that you have to make a lot to save a lot is a myth. Whether you make $15,000 or $1.5 million, you can save and invest for your future. Just as with any great journey, sometimes the only thing holding you back is getting started. And my guess is you're already investing more than you think!

Melinda takes a look at the different kinds of retirement accounts and the differences between them. Whether it's a 401(k), a Roth IRA, or one of the many other retirement accounts, there's probably an option that applies to your situation. Generally speaking they all have significant tax advantages over regular investments, so let's dig in and see which ones make sense for you.