Question 1

Do I have to move my 401(k) when I leave a job?

Accepted Answer

Not always. Many plans let you leave it if the balance is above a certain amount. Compare fees and options first.

Question 2

Can I use my 401(k) if I’m out of work and need money?

Accepted Answer

You can, but taxes and penalties often apply. Check unemployment, emergency savings and other options first, and get advice.

Question 3

What happens to my 401(k) when I quit or get laid off?

Accepted Answer

It stays yours. You can usually leave it, move it to a new employer plan, roll it into an IRA, or cash it out.

Question 4

How much will I lose if I cash out my 401(k)?

Accepted Answer

You’ll owe income tax, and usually a 10% penalty if you’re under 59½, plus you lose future growth. The total hit can be large.

Question 5

What is a direct rollover?

Accepted Answer

Moving money straight from your old plan to a new plan or IRA without a check made out to you, which avoids tax withholding and deadline risks.

Question 6

What happens to my 401(k) loan if I leave my job?

Accepted Answer

It may come due. If not repaid by the deadline, the unpaid amount can be treated as a taxable distribution.

Question 7

Will I lose my employer match when I leave?

Accepted Answer

You keep vested employer contributions. Unvested amounts may be forfeited depending on your plan’s schedule.

Question 8

How do I find an old 401(k) I forgot about?

Accepted Answer

Contact former employers, check old statements, or use the Department of Labor’s Retirement Savings Lost and Found tool.

Common questions: 401(k) after a job