What Happens to My 401(k) If I Leave My Job?

Changing jobs? Your 401(k) doesn’t disappear—it just needs a decision.

1. Leave it where it is: If your account meets a minimum balance (usually $5,000+), you may keep it in your former employer’s plan.

2. Roll it over: Move your funds to a new employer’s 401(k) plan or an IRA. This keeps your money tax-deferred and avoids penalties.

3. Cash it out: You’ll pay income taxes—and a 10% early withdrawal penalty if you're under age 59½ (unless an exception applies).

• Check for outstanding loans. Many plans require you to repay them quickly or treat them as taxable distributions.

• Review your vesting. You’ll keep any vested employer contributions but may forfeit unvested amounts.

• Update your contact info to receive future statements or tax forms.

Contact your plan administrator for rollover instructions or help initiating a distribution.