Closing your Empower 401k account can be done easily. First, contact customer service to request a withdrawal form. This form will need to be completed and returned to Empower. Once the form is processed, Empower will begin the process of closing your account and distributing your funds.
You should expect the process to take several weeks. Once your account is closed, you will receive a confirmation letter from Empower.
Maximize Employer Match
Before exploring options to close your Empower 401(k) account, consider whether you’re maximizing your employer’s matching contributions. Many employers offer a match up to a certain percentage of your contributions, which is essentially free money for your retirement. Closing your account too early could result in leaving potential employer match funds behind.
- Review your employer’s 401(k) plan document or speak to human resources to understand the matching provisions.
- Aim to contribute at least enough to receive the full employer match, if possible.
- Consider increasing your contributions gradually to maximize the benefit over time.
Diversify Investments
Closing your Empower 401k account permanently terminates your access to the funds and investment options within the account. While closing your account may be necessary in certain situations, it’s crucial to consider the potential impact on your long-term financial plan.
One key factor to consider is the loss of diversification benefits. A 401k account offers a wide range of investment options, allowing you to spread your investments across different asset classes, such as stocks, bonds, and mutual funds. This diversification helps reduce overall risk and improve the chances of long-term growth.
By closing your Empower 401k account, you lose the opportunity to access these diversified investments and may have to find alternative ways to invest your retirement savings.
Rebalance Portfolio Regularly
Regularly review and rebalance your 401(k) portfolio to ensure that your investments align with your risk tolerance, time horizon, and financial goals. Adjust your asset allocation as necessary to maintain a desired level of diversification and mitigate market volatility. This can involve shifting funds between stocks, bonds, and other asset classes, which can help you optimize returns and reduce risk.
How to Close Empower 401k Account
To close your Empower 401k account, you can utilize the resources provided by the company. These resources include:
- Online account portal
- Customer service phone line
- Local branch office
The online account portal is the most convenient way to close your account. You can simply log in to your account and follow the instructions to close it.
If you need help closing your account, you can call the customer service phone line. A representative will be able to assist you with the process.
You can also close your account in person at a local branch office. However, you may need to make an appointment in advance.
When closing your account, you will need to provide your account number and the name of the beneficiary who will receive the funds.
Important Considerations:
Before closing your account, it is important to consider the following:
- You will not be able to access the funds in your account after it is closed.
- You may be subject to taxes and penalties if you withdraw funds from your account before you reach the age of 59½.
Fees:
There is typically no fee to close an Empower 401k account. However, you may be subject to fees if you transfer money out of the account.
Welp, there you have it, folks! Closing your Empower 401k account is as easy as pie. Just follow these steps and you’ll be rolling in dough in no time. Thanks for reading, and feel free to swing by again if you need any more financial wisdom. I’m always here to help you get your money right!