2006-06-27 01:47:50 · 6 answers · asked by cocoa_bronze 1 in Business & Finance ➔ Careers & Employment
It depends on how much you have and the rules of the plan. If you meet a designated minimum then you can leave the funds with the former employer's plan. If you have less than the designated minimum then a distribution will be sent that you must either deposit into a qualified traditional IRA Account or pay the early withdrawl penalty and taxes on the money.
You can also choose to do a direct rollover to an existing Traditional IRA or to the new employers 401(k) plan.
2006-06-27 02:19:43 · answer #1 · answered by Thrasher 5 · 0⤊ 0⤋
Depends on whether you are vested or not. Different Co.'s have different amounts of time to become vested, usually 2 - 5 years. If you are vested you get to keep everything you and your company put into your 401K, if you are not vested you only get to keep what you put in. You can roll it into a new 401K with out penalty, but if you cash out, plan on losing %40 to %60 of everything.
2006-06-27 01:50:56 · answer #2 · answered by Hawk996 6 · 0⤊ 0⤋
The money still belongs to you.
you can transfer it to a new 401k at another job, or to an IRA. If you just take the cash value of it, you have to pay taxes on it.
2006-06-27 02:03:30 · answer #3 · answered by Kutekymmee 6 · 0⤊ 0⤋
Assuming that you are vested, you can either (1) cash it out, (2) leave it where it is, (3) roll it over into your new employer's plan (in many cases), or (4) roll it over directly into a Rollover IRA.
Moving the money directly into a Rollover IRA is almost always the best move.
2006-06-27 01:53:27 · answer #4 · answered by Jason 3 · 0⤊ 0⤋
You can cash it out, leave it as it is, or roll it over into a new account at your new job.
2006-06-27 01:51:17 · answer #5 · answered by Laura 3 · 0⤊ 0⤋
You can transfer it to the new co.
2006-06-27 01:54:45 · answer #6 · answered by stillhappy89 4 · 0⤊ 0⤋