if i get fired from my job do i lose my 401k ? ive worked there for 12 yrs ?

Answer 1

What happens to your 401(K) if you change/leave/lose your job?

You have three options:

Keep your money in your former employer's 401(K): You have to have a vested amount of at least $5,000 in your account to choose this option. Also, you have to be under the plan's normal retirement age. If your vested account balance is under $5,000, you may be forced by the employer to take a distribution. Speak to your HR Department for details about forced distribution.

Roll the money over into a new 401(K): If you choose this option, make sure that the check is written directly to the new 401(K) account. There is no grace period for this option. If the money comes to you before it is placed in the new account, you will be charged the income tax and 10% penalty fine.

Cash out: you can withdraw the money in your 401(K). However, if you are under the age of 59.5, the income tax and 10% penalty fine will apply. If you are 55 years or older, you can begin tapping into your 401(K) and the 10% penalty will not apply. It doesn't matter if you left the job or were fired or retired. However, you will still have to pay the income taxes on your withdrawals.

Check with your HR Department for details and specifications for these conditions

Answer 2

Nope..they can't take it. You've been there far longer then the longest vesting schedule (7 years). So you get your contributions, the earnings on that, their contributions (if any) and the earnings on that. If they make one for 2006, you are likely even entitled to a contribution for that year too because you were still employed as of 12/31 and that's all that matters.

In fact, not only do you get it...but if it's over 5k then you can leave it in their plan! They can't force you out no matter what. So, if you want to be a thorn in their side...Though I wouldn't recommend that. Simply be professional and ask about getting a distribution.

I've actually seen someone be fired for embezzlement and request distribution while they were in jail. Company had to pay it...though it irked the owner to no end. Even though court had ordered restitution, ERISA (which governs 401ks) is federal law and supercedes state law. ERISA says they can't take it, touch it, attach it, garnish it, or anything like that. Doing so would open them up to personal civil liability and they don't want that.

Answer 3

No, You may lose some of the money the company put in for you if you are not fully vested, but the amount put in by you is safe. You can roll it over into another account with a new employer, into an ira, or draw it out. The draw out is the worst option though because of penalty and tax implications. Consult a financial adviser. They will generally charge you very little for an initial consult. They want your business and will give you a good idea what to do with it. They may recommend putting it into an ira with them, which is fine if you don't immediately get a new job. If you do, you may consider rolling it into a 401k at your new job, regardless of what the adviser says.

Answer 4

I don't agree with either statement. First, Cena is the top face of WWE, he sells the most merchandise, he sells out arenas, he brings in the most money and probably makes the most money of all the WWE wrestlers, not only that, but he has a passion and love for the wrestling business, it is something he has always wanted ever since he was a child, he is living his dream, no point in giving that up. Second, that just isn't true, he has earn most fans respect, there are only a few Cena haters out there, who just hate Cena for doing his job, most fans love Cena, and the others, don't have anything against Cena personally, they respect how hard he works, and many other things about Cena, they just don't like Cena's Character. Truthfully, this is a good majority of wrestling fans that respect all wrestlers, for the bumps and risks they take just to entertain us, the fans, and, if you was a major WWE star, would you give all that up just because some one on Y!As told you to, I don't think so, and if you did, well, that wouldn't be the smartest thing to do.

Answer 5

No. You have a limited time to roll it into a new 401(k) or it will automatically go into and IRA account. How much you recieve from your company depends on thier rate of vesting. At 12 years most places would have you at 60-75% vested, but you would have to check your company policy to be sure.

Answer 6

No - you should get all of your contributions and those of the company if you have vested. Most companies have a vesting period of 5 years or less.

You should speak to your bank or some other financial advisor about rolling the funds into a IRA. You don't want to have any tax penalties accrue.

Answer 7

That is your money and you keep that. You will have the option to leave it in your company plan or roll it over to another plan. When I left my last company, I contacted a financial planner and he rolled it into the option that I got to chose (he explained all the options). It has grown by 10% since August and I haven't contributed anything to it!

Answer 8

No you can either roll it over into an IRA account for no tax reduction or another money market account. Or you can cash it out...but it's like 38% taxable. That's a lot of money to loose on your retirement fund. I suggest researching IRA accounts.....Charles Swaab is good one.

Answer 9

You will not lose it. It is through your employer however the actual account is with a seperate financial institution and it belongs to you. You can choose to either keep it with that institution or roll it over to another. Beware of tax implications if you were to just cash it out.

Answer 10

If your in a job that pays you 401k you'd think you'd know if you would keep it or not.. you must have somme intelligence