When you change jobs, you need to decide what to do with the money in your 401(k) plan. Should you leave it where it is, or take it with you? Should you roll the money over into an IRA or into your new employer's retirement plan?

As you consider your options, keep in mind that one of the greatest advantages of a 401(k) plan is that it allows you to save for retirement on a tax-deferred basis. When changing jobs, it's essential to consider the continued tax-deferral of these retirement funds, and, if possible, to avoid current taxes and penalties that can eat into the amount of money you've saved.

TAKE THE MONEY AND RUN

When you leave your current employer, you can withdraw your 401(k) funds in a lump sum. To do this, simply instruct your 401(k) plan administrator to cut you a check. Then you're free to do whatever you please with those funds. You can use them to meet expenses (e.g., medical bills, college tuition), put them toward a large purchase (e.g., a home or car), or invest them elsewhere.

While cashing out is certainly tempting, it's almost never a good idea. Taking a lump sum distribution from your 401(k) can significantly reduce your retirement savings, and is generally not advisable unless you urgently need money and have no other alternatives. Not only will you miss out on the continued tax-deferral of your 401(k) funds, but you'll also face an immediate tax bite.

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First, you'll have to pay federal (and possibly state) income tax on the money you withdraw (except for the amount of any after-tax contributions you've made). If the amount is large enough, you could even be pushed into a higher tax bracket for the year. If you're under age 59½, you'll generally have to pay a 10 percent premature distribution penalty tax in addition to regular income tax, unless you qualify for an exception. (For instance, you're generally exempt from this penalty if you're 55 or older when you leave your job.) And, because your employer is also required to withhold 20 percent of your distribution for federal taxes, the amount of cash you get may be significantly less than you expect.

Note: Because lump-sum distributions from 401(k) plans involve complex tax issues, especially for individuals born before 1936, consult a tax professional for more information.

Note: If your 401(k) plan allows Roth contributions, qualified distributions of your Roth contributions and earnings will be free from federal income tax. If you receive a nonqualified distribution from a Roth 401(k) account only the earnings (not your original Roth contributions) will be subject to income tax and potential early distribution penalties.

LEAVE THE FUNDS WHERE THEY ARE

One option when you change jobs is simply to leave the funds in your old employer's 401(k) plan where they will continue to grow tax deferred.

However, you may not always have this opportunity. If your vested 401(k) balance is $5,000 or less, your employer can require you to take your money out of the plan when you leave the company. (Your vested 401(k) balance consists of anything you've contributed to the plan, as well as any employer contributions you have the right to receive.)

TRANSFER THE FUNDS DIRECTLY TO YOUR NEW EMPLOYER'S RETIREMENT PLAN OR TO AN IRA (A DIRECT ROLLOVER)

Just as you can always withdraw the funds from your 401(k) when you leave your job, you can always roll over your 401(k) funds to your new employer's retirement plan if the new plan allows it. You can also roll over your funds to a traditional IRA. You can either transfer the funds to a traditional IRA that you already have, or open a new IRA to receive the funds. There's no dollar limit on how much 401(k) money you can transfer to an IRA.

You can also roll over ("convert") your non-Roth 401(k) money to a Roth IRA. The taxable portion of your distribution from the 401(k) plan will be included in your income at the time of the rollover.

If you've made Roth contributions to your 401(k) plan you can only roll those funds over into another Roth 401(k) plan or Roth 403(b) plan (if your new employer's plan accepts rollovers) or to a Roth IRA.

Note: In some cases, your old plan may mail you a check made payable to the trustee or custodian of your employer-sponsored retirement plan or IRA. If that happens, don't be concerned. This is still considered to be a direct rollover. Bring or mail the check to the institution acting as trustee or custodian of your retirement plan or IRA.

HAVE THE DISTRIBUTION CHECK MADE OUT TO YOU, THEN DEPOSIT THE FUNDS IN YOUR NEW EMPLOYER'S RETIREMENT PLAN OR IN AN IRA (AN INDIRECT ROLLOVER)

You can also roll over funds to an IRA or another employer-sponsored retirement plan (if that plan accepts rollover contributions) by having your 401(k) distribution check made out to you and depositing the funds to your new retirement savings vehicle yourself within 60 days. This is sometimes referred to as an indirect rollover.

However, think twice before choosing this option. Because you effectively have use of this money until you redeposit it, your 401(k) plan is required to withhold 20 percent for federal income taxes on the taxable portion of your distribution (you get credit for this withholding when you file your federal income tax return for the year). Unless you make up this 20 percent with out-of-pocket funds when you make your rollover deposit, the 20 percent withheld will be considered a taxable distribution, subject to regular income tax and generally a 10 percent premature distribution penalty (if you're under age 59½).

WHICH OPTION IS APPROPRIATE?

Assuming that your new employer offers a retirement plan that will accept rollover contributions, is it better to roll over your traditional 401(k) funds to the new plan or to a traditional IRA?

Each retirement savings vehicle has advantages and disadvantages. Here are some points to consider:

-  A traditional IRA can offer almost unlimited investment options; a 401(k) plan limits you to the investment options offered by the plan

-  A traditional IRA can be converted to a Roth IRA if you qualify

-  A 401(k) may offer a higher level of protection from creditors

-  A 401(k) may allow you to borrow against the value of your account, depending on plan rules

-  A 401(k) offers more flexibility if you want to contribute to the plan in the future

Finally, no matter which option you choose, you may want to discuss your particular situation with a tax professional (as well as your plan administrator) before deciding what to do with the funds in your 401(k).

After failing to rebound earlier today, The yen crosses seem to be gathering downside momentum before the week closes. Risk aversion is a factor in driving the Japanese yen higher. European indices are generally lower, in particular, with the DAX down -110 pts, or -1.1% at the time of writing. Investors sentiments were weighed down by renewed tensions in Ukraine. US stock futures are pointing to a lower open too. The USD/JPY is taking the lead and breaches 102.02 minor supports and should be heading back to 101.32 level. The EUR/JPYand GBP/JPY are also seen dipping mildly.

Sterling recovers against dollar today as retail sales unexpectedly showed 0.1% mom growth in March. Markets expected -0.4% mom fall. However, strength was limited as BBA mortgage approvals unexpectedly dropped to 45.9k in March versus expectation of a rise to 48.9k. The GBP/USD is held inside tight range below 1.6841 temporary top and the sideway consolidation could extend further. Abney Associates Team A financial advisory practice of Ameriprise Financial Services, Inc., The EUR/GBP is holding in tight range around 0.8230 while the GBP/JPY is already stays around 171/172. The pound is lacking a clear direction for the moment.

SNB president Jordan said today that "the environment remains extremely challenging for both the Swiss economy and our monetary policy." He reiterated that "with interest rates close to zero and a Swiss franc which is still high, the minimum exchange rate continues to be the SNB's most important monetary policy instrument." And, "an appreciation of the Swiss franc would entail a threat of deflation."

Japanese national CPI core rose 1.3% yoy in March, unchanged from February and was below expectation of 1.4%. Tokyo CPI core raised 2.7% yoy in April, versus expectation of 2.8% yoy. Most of the jump in Tokyo CPI came from the sales-tax hike on April. Taking away that impact, Tokyo CPI rose 1.0% yoy, unchanged from March. Also released from Japan, all industry index dropped -1.1% mom in February.

In Canada, the BoC governor Poloz said yesterday that "there is a growing consensus that interest rates will still be lower than we were accustomed to in the past." And, "after such a long period at such unusually low levels, interest rates won't need to move as much to have the same impact on the economy."

Whether you’re saving for retirement, college for your kids or other needs, you may be unsure about what to do next or whether you can do anything at all. That's where we can help. We'll take the time to listen to you and understand your goals and dreams. We'll help you build a plan to get back on track toward reaching them. Working together, Ameriprise Financial Abney Associates Team will work to find investing opportunities in today’s uncertain market that are aligned with your financial goals. Together, we can bring your dreams more within reach.

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Att gifta sig är spännande, men det innebär många utmaningar. En sådan utmaning som du och din make kommer att ansiktet är hur man slår ihop din ekonomi. Planera noga och kommunicera tydligt är viktiga, eftersom de finansiella beslut som du gör nu kan ha en bestående effekt på din framtid.

DISKUTERA DINA FINANSIELLA MÅL

Det första steget i kartläggning ut din ekonomiska framtid tillsammans är att diskutera dina finansiella mål. Börja med att göra en lista över dina kortsiktiga mål (t.ex. betala av bröllop skuld, ny bil, semester) och långsiktiga mål (t.ex. med barn, dina barns högskoleutbildning, pension). Sedan avgöra vilka mål är viktigast för dig. När du har identifierat de mål som är en prioritet, kan du fokusera din energi på att uppnå dem.

UTARBETA EN BUDGET

Nästa, du bör förbereda en budget som visar alla dina inkomster och utgifter under en viss tidsperiod (t.ex., varje månad, varje år). Du kan ange en make ska ansvara för budgeten, eller du kan turas om att föra register och betala räkningar. Om både du och din make ska involveras, se till att du utvecklar ett system för registrering som ni förstår. Och kom ihåg att hålla dina poster i ett gemensamt register så att både av kan du enkelt hitta viktiga dokument.

Börja med att lista dina källor av inkomst (t.ex. lön, räntor, utdelningar). Sedan, lista dina utgifter (det kan vara bra att granska flera månader av poster i din checkhäfte och kreditkort räkningar). Lägga upp dem och jämföra de två summorna. Förhoppningsvis får du ett positivt tal, vilket innebär att du spenderar mindre än du tjänar. Om inte, se över dina utgifter och se om du kan skära ner på dina utgifter.

BANKKONTON--SEPARAT ELLER GEMENSAMT?

Vid något tillfälle, du och din make kommer att behöva besluta om att kombinera dina bankkonton eller hålla dem separat. Att upprätthålla ett gemensamt konto har fördelar, såsom lättare registerhållning och lägre underhållsavgifter. Det är dock ibland mer svårt att hålla reda på hur mycket pengar är i ett gemensamt konto när två personer har tillgång till den. Naturligtvis kan du undvika problemet genom att se till att du berätta för varandra varje gång du skriver en check eller ta ut pengar från kontot. Eller, du kunde alltid separat redovisning.

KREDITKORT

Om du funderar på att lägga till ditt namn till din makes kreditkortskonton, Tänk om. När du och din make har gemensamma kredit, båda blir du ansvarig för 100 procent av kreditkort skuld. Dessutom, om en av er har dålig kredit, påverkar negativt kreditbetyget för den andra.

Om du eller din make inte kvalificerar sig för ett kort på grund av dålig kredit, och du är villig att ge din make konto privilegier ändå, kan du göra din make en auktoriserad användare av ditt kreditkort. En behörig användare är inte en gemensam kortinnehavaren och är därför inte ansvariga för eventuella belopp som debiteras på kontot. Också, kontoaktivitet inte utställning upp på den auktoriserade användaren kredit-post. Men kom ihåg, du förblir ansvariga för kontot.

FÖRSÄKRING

Om du och din make har separat sjukförsäkring, vill du göra en kostnadsnyttoanalys av varje plan för att se om du ska fortsätta att hålla din hälsa täckning separat. Till exempel, om din makes hälsa plan har en högre självrisk och/eller egenavgifter eller färre fördelar än de som erbjuds av din plan, kanske han eller hon vill gå med din hälsa plan istället. Du kommer också vill jämföra räntan för en familj plan mot kostnaden för två enda planer.

Det är en bra idé att undersöka din auto försäkringsskydd, alltför. Om du och din make egna separata bilar, kan du ha olika auto försäkringsgivare. Överväga att sammanföra din auto försäkringar med ett företag; många försäkringsbolag ger dig en rabatt om du försäkra mer än en bil med dem. Om en av er har en dåliga färdregistreringen, men se till att ändra företag kommer inte att innebära betala en högre premie.

When you determine how much income you'll need in retirement, you may base your projection on the type of lifestyle you plan to have and when you want to retire. However, as you grow closer to retirement, you may discover that your income won't be enough to meet your needs. If you find yourself in this situation, you'll need to adopt a plan to bridge this projected income gap.

DELAY RETIREMENT: 65 IS JUST A NUMBER

One way of dealing with a projected income shortfall is to stay in the workforce longer than you had planned. This will allow you to continue supporting yourself with a salary rather than dipping into your retirement savings. Depending on your income, this could also increase your Social Security retirement benefit. You'll also be able to delay taking your Social Security benefit or distributions from retirement accounts.

At normal retirement age (which varies, depending on the year you were born), you will receive your full Social Security retirement benefit. You can elect to receive your Social Security retirement benefit as early as age 62, but if you begin receiving your benefit before your normal retirement age, your benefit will be reduced. Conversely, if you delay retirement, you can increase your Social Security benefit.

Remember, too, that income from a job may affect the amount of Social Security retirement benefit you receive if you are under normal retirement age. Your benefit will be reduced by $1 for every $2 you earn over a certain earnings limit ($15,120 in 2013, $14,640 in 2012). But once you reach normal retirement age, you can earn as much as you want without affecting your Social Security retirement benefit.

Another advantage of delaying retirement is that you can continue to build tax-deferred funds in your IRA or employer-sponsored retirement plan. Keep in mind, though, that you may be required to start taking minimum distributions from your qualified retirement plan or traditional IRA once you reach age 70½, if you want to avoid harsh penalties.

And if you're covered by a pension plan at work, you could also consider retiring and then seeking employment elsewhere. This way you can receive a salary and your pension benefit at the same time. Some employers, to avoid losing talented employees this way, are beginning to offer "phased retirement" programs that allow you to receive all or part of your pension benefit while you're still working. Make sure you understand your pension plan options.

SPEND LESS, SAVE MORE

You may be able to deal with an income shortfall by adjusting your spending habits. If you're still years away from retirement, you may be able to get by with a few minor changes. However, if retirement is just around the corner, you may need to drastically change your spending and saving habits. Saving even a little money can really add up if you do it consistently and earn a reasonable rate of return. Make permanent changes to your spending habits and you'll find that your savings will last even longer. Start by preparing a budget to see where your money is going. Here are some suggested ways to stretch your retirement dollars:

- Refinance your home mortgage if interest rates have dropped since you took the loan.

- Reduce your housing expenses by moving to a less expensive home or apartment.

- Sell one of your cars if you have two. When your remaining car needs to be replaced, consider buying a used one.

- Access the equity in your home. Use the proceeds from a second mortgage or home equity line of credit to pay off higher-interest-rate debts.

- Transfer credit card balances from higher-interest cards to a low- or no-interest card, and then cancel the old accounts.

- Ask about insurance discounts and review your insurance needs (e.g., your need for life insurance may have lessened).

- Reduce discretionary expenses such as lunches and dinners out.

Earmark the money you save for retirement and invest it immediately. If you can take advantage of an IRA, 401(k), or other tax-deferred retirement plan, you should do so. Funds invested in a tax-deferred account will generally grow more rapidly than funds invested in a non-tax-deferred account.

REALLOCATE YOUR ASSETS: CONSIDER INVESTING MORE AGGRESSIVELY

Some people make the mistake of investing too conservatively to achieve their retirement goals. That's not surprising, because as you take on more risk, your potential for loss grows as well. But greater risk also generally entails greater reward. And with life expectancies rising and people retiring earlier, retirement funds need to last a long time.

That's why if you are facing a projected income shortfall, you should consider shifting some of your assets to investments that have the potential to substantially outpace inflation. The amount of investment dollars you should keep in growth-oriented investments depends on your time horizon (how long you have to save) and your tolerance for risk. In general, the longer you have until retirement, the more aggressive you can afford to be. Still, if you are at or near retirement, you may want to keep some of your funds in growth-oriented investments, even if you decide to keep the bulk of your funds in more conservative, fixed-income investments. Get advice from a financial professional if you need help deciding how your assets should be allocated.

And remember, no matter how you decide to allocate your money, rebalance your portfolio now and again. Your needs will change over time, and so should your investment strategy.

ACCEPT REALITY: LOWER YOUR STANDARD OF LIVING

If your projected income shortfall is severe enough or if you're already close to retirement, you may realize that no matter what measures you take, you will not be able to afford the retirement lifestyle you've dreamed of. In other words, you will have to lower your expectations and accept a lower standard of living.

Fortunately, this may be easier to do than when you were younger. Although some expenses, like health care, generally increase in retirement, other expenses, like housing costs and automobile expenses, tend to decrease. And it's likely that your days of paying college bills and growing-family expenses are over.

Once you are within a few years of retirement, you can prepare a realistic budget that will help you manage your money in retirement. Think long term: Retirees frequently get into budget trouble in the early years of retirement, when they are adjusting to their new lifestyles. Remember that when you are retired, every day is Saturday, so it's easy to start overspending.