What happens to my Roth 401(k) when I change jobs?

Dave Says
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Dear Dave,
    What happens to my Roth 401(k) when I change jobs and go to a company that doesn’t offer this type of investment savings account? How should you proceed in this situation?
    Jamie

    
    Dear Jamie,
    Anytime you leave one company for another, you should always roll your 401(k) from your former employer into an IRA (individual retirement account). If it’s a traditional IRA, you roll it to a traditional IRA. If it’s a Roth IRA, you roll it to a Roth IRA. You would choose your own mutual funds, and you would manage your own accounts, with the help of a financial advisor of your choosing.
    When it comes to choosing a financial advisor, my advice is to find someone with the heart of a teacher. A good financial advisor will help you make informed decisions about your money, and they will explain all aspects of your investments until you fully understand everything. In short, a quality advisor will never encourage you to invest in something you don’t understand.

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EDITOR'S NOTE: Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

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