The Expert Podcast

…Four Oh one K funds are considered to be a very important part of retirement security for, people who are older. There's three sources of income that older people retirees can have and it could be 401k funds. It could be social security or private pensions. Well over the past decades, private pensions have kind of gone away Most companies don't have private pensions anymore. And even government agencies are getting away from pensions because it's really affecting their budget, social security.

As a. source of income for people who are retired older people is also coming under pressure where the social security. trust fund is running out of money. The government's worried about the next decade where there may not be enough money to go around or there might need to be cuts in social security. So the government really wants 401k funds to be.

A good supporting platform for people who retire And what they're worried about is. It's very difficult to move money from one employer to another If you leave a job. And work somewhere else Your 401k fund normally has to be closed out cashed out and then reopen somewhere else. And that. That

transition sometimes causes people to take that money and then spend it before they put it into the new employer. account. So the government is looking to pass some laws where it will keep you from cashing out your 401k You can just make it portable from one employer to another. This is designed to keep the balance is high in 401k So the government doesn't come. pressure later.

To supply, social security or other resources for retirees. This may make it easier if you switched jobs and, you know over the last, you know 20 or 30 years many people have turned to switching jobs more frequently. People used to stay in jobs for five or 10 or 15 years. Now there's a lot of job hopping, two or three years. And if you have to close out or cash out your 401k.

Especially when you're changing jobs a lot of times it's tempting to take that money and maybe spend it on something. If you have a two or three month gap in between two jobs maybe use that money to pay your bills. If you're going to move.

residences maybe you use it to furnish your new house. There's a lot of temptation to spend your 401k money. When you switched jobs So by combining. The fact that you have to cash out your 401k and have all this money. And the fact that you might need money It's very tempting to spend it So the government's putting some new rules in place.

To try to make it easier or even required that you just portable your money from one employer to another So these are some new laws that are in the, in the works right now for a 401k fund transfer that might affect you If you're switching jobs or have a new employment in the future