Starting a new career in the United States as a MedPro International Explorer is an exciting milestone, but with new opportunities come new responsibilities, especially when it comes to managing your money. One of the most powerful tools you can take advantage of for securing your financial future is your 401(k) retirement plan. MedPro offers a 401(k) as part of your benefits package. But simply having a retirement account isn’t enough. You need to make sure you’re using it wisely. That’s where Sage Personal Finance comes in.
As part of your MedPro benefits, Sage Personal Finance provides tools and guidance to help you make smart decisions with your money, including managing your 401(k). Whether you’re just getting started or looking to grow your savings, Sage will help you take confident steps toward a stronger financial future.
What is a 401(k)
A 401(k) is an employee-sponsored retirement savings plan that allows you to take a percentage of pre-taxed money out of your paycheck and invest it in stocks, bonds, or money market investments, lowering your taxable income. MedPro matches a certain percentage of your contributions, meaning you get free money to invest.
Key Features
- Automated Savings: Contributions are automatically deducted from your paycheck, making it easier to save.
- Portability: You can generally roll over your 401(k) to an IRA or a new employer’s plan when you switch jobs.
- Higher Contribution Limits: 401(k) plans typically have higher annual contribution limits compared to individual retirement accounts (IRAs).
- Catch-Up Contributions: If you are 50 or older, you can make additional “catch-up” contributions above the standard annual limit
Does It Cost Me?
Not at all! The 401(k) plan is free for MedPro International Explorers. Just opt in when you are eligible, and choose how much you would like to put away from your check per pay period. It’s a great option for Explorers to put money aside while they are working in order to help save for retirement and have funds for travel, living expenses, and other goods or services. Your future self will thank you!
401(k) Options When Changing Jobs
If you’ve changed jobs or are thinking about it, you have four main options for your old 401(k).
- Explorers may choose to leave their 401(k) with their previous employer, which is often the simplest option. However, it comes with potential downsides. It’s easy to lose track of the account over time, and if your balance is below a certain threshold, your former employer could automatically distribute the funds. On the other hand, some plans may offer low-cost or exclusive investment options that make keeping the account worthwhile.
- Explorers can roll their old 401(k) into their new employer’s 401(k). The main benefit of this option is the convenience of consolidated accounts, retaining strong creditor protections, and keeping the funds accessible through the plan’s loan feature.
- Explorers can roll their 401(k) into a Traditional IRA. This option offers a wider range of investment options and more control. However, you may lose some creditor protections and loan access.
- Cash it out. Upside, you get your money. Downside: Explorers will owe taxes and possibly a 10 percent early withdrawal penalty. More importantly, you’ll lose the potential for long-term growth. Example: Cashing out $10,000 now instead of rolling it over could mean losing up to $100,000 in potential growth over 30 years (assuming 8% annual returns).
Key Factors to Consider
In most circumstances, you’ll be required to take the Required Minimum Distributions (RMDs) from your retirement account(s) by age 73. Withdrawing before age 59½ could result in taxes and penalties. And a 401(k) loan not repaid becomes a taxable distribution. It can be confusing, but it doesn’t have to be. Take advantage of Sage Personal Finance to get expert, unbiased advice and make confident choices about your financial future. You work hard. Be sure your money is working hard, too.
Upcoming Webinars
Want to learn more about personal finance and protecting the ones you love? Don’t miss out on this upcoming webinar.
Life Insurance 101
October 7, 2025, 11:00 PDT
Get the basics on life insurance and how it fits into your financial strategy.