What Happens to Your 401(k) When You Change Jobs?

Question

Learn what happens to your 401(k) after changing jobs, including rollover options, tax rules, and ways to avoid penalties.

Riya Agrawal · Accepted Answer

When you leave a job, your money stays yours. You can leave it where it is, move it to your new employer’s plan, or roll it into an IRA. Avoid cashing out, as you'll face heavy taxes and a 10% early withdrawal penalty.

401k

Nest Stay Home · Answer

When changing jobs, your 401(k) can be rolled over, left, transferred, or cashed out, each option affecting taxes and retirement savings.