avoid

4 tips to avoid penalties and taxes on your 401k.



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hey Dustin Tibbets here financial

adviser with jazz wealth managers and

today we're talking about four tips to

help you avoid fees and penalties in

your 401k but before we get started I am

so excited about this have you seen our

new product it's free we're offering it

to our customers right now currently

getting them signed up it's called nest

egg and basically you can see your

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your bank accounts your credit cards

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because we can help you we can see

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have not just retirement investing so

check that out it's at jazz wealth calm

forward-slash nest egg we're getting our

customers signed up now but if you're

interested you're welcome to try it out

too just register on the page now let's

get started we're gonna talk about 401k

fees today I've heard a lot of horror

stories from you guys out there so let's

get started the first thing you want to

do is don't take your withdrawals early

if you can avoid it at all costs I know

emergencies come up and you think hey

there's some money over there maybe I'll

take it from there and I'll just worried

about the 401k in the future look if you

took just $5,000 out and you're in the

25% income tax bracket when you take the

$5,000 out your taxes and penalties are

gonna be one thousand seven hundred and

fifty dollars of that money so huge

chunk not to mention that $5,000 doesn't

get a chance to grow because you took it

out so please do anything you can to not

take money out of your 401k this is

where our nest egg product is going to

come in handy because I'll be able to

help you if you call me and say look

I've got these investments I've got this

money you're managing

retirement account I need five thousand

ten thousand twenty thousand dollars

what do I do well at least I can help

you make the best possible choice there

and hopefully avoid some fees the second

thing I want you to focus on is not

leaving your job before you're vested if

your company matches some of your

contribution then there may be a vesting

period which would be really clearly

displayed in the 401k paperwork all that

means is that every dollar you put in

the company's gonna put in some money so

long as you stay at least a certain

amount of time maybe two or three years

now the really good companies have

immediate vesting so that's no problem

there but if you have a two-year vesting

period a three-year vesting period try

not to leave try to get that free money

that they're contributing and don't

leave your job if they do not contribute

any money into your 401k

then don't open a 401k with them open a

traditional IRA on your own or give us a

call here at Jes number three if and

when you do leave your job rollover your

401k directly now there's a big

difference here there's a couple

different ways you can do this you can

rollover your 401k and your existing

provider will send you a check and then

you send the cheque on to the new

company whatever account you've chosen

try not to do that try to ask them to

take the money and just move it for you

to your new account the reason why is if

you get a check in your name from your

401k you have 60 days to deposit it into

your new account where that may be it's

a traditional IRA if you do not then

you're in big trouble you're gonna pay

penalties and taxes so things happen you

forget maybe you get the check he

deposit it you get excited you think I'm

gonna keep a little bit of this don't do

it you're going to pay a lot of

penalties so make sure your 401k gets

rolled over directly and the final thing

I want you to keep in mind is make sure

that wherever your investments are

whether they're in a 401k where you roll

them over make sure you have the best

investments for your goals not what

somebody else tells you but for your

specific goals or get a fiduciary to

help you out and do that for you

it's free hey if you need help with this

go to jazz wealth calm I can help you

with your traditional IRAs opening new

Roth IRAs

whatever it is you choose to do if you

have a 401k and you want to roll it over

I can help you with that - it's actually

quite simple and if you have a 401k and

you're at your existing employer and you

just have some concerns about the

investments in it be sure to sign up for

our new nest egg it is at jazz welcome

forward slash nest egg I'll be able to

look at those investments for you you

say I have a 401k and I just want to

make sure I'm invested correctly I can

take a look and help you with those

investments completely free of charge so

do that for me if you'd like to speak

with me directly go to Jaz wealth com up

at the top click schedule a call be

happy to speak with you and hope to talk

to you soon

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