I have 401k from my current employer. If i leave my current employer, and start working at another company.?

What options do i have? am i gonna lose any benefits? can i continue paying from my pocket?


Other answer:

Your 401K is not with your current employer, it's with a firm that manages it for them. You do not lose your 401K if you move, but may have to open another new 401K account with your new employer of course. You can then transfer your old 401K funds to the new firm.
Brent G:
You're fine. If you like what it's being invested in, you can keep it there and continue to let it sit and grow. (May have to have a minimum balance for that, so check your Employee Handbook.) I left my previous job 3 years ago and my 401k is still there, I still get my quarterly statements, and I still can go online and track it daily.

You may want to check the minimum timeline you have to stay employed there though to keep your company matches. Any money that you pay in, you own 100% of those funds. However, if your company matches any of your contributions, they may place restrictions on those and if you leave early you may forfeit those. Thus, if they have a 2 year minimum and you're there now for 1 yr and 10 months, you may want to stick around those extra months to ensure you get to keep that money. Again, check your Company Handbook for that.

From your new job though you will not be able to make new contributions to this old 401k, so just open a second 401k at your new job for future contributions. You are able to have multiple 401k accounts at any given time, just as long as your total annual contributions don't exceed the annual max.

If you don't want to keep the 401k at the old employer, you can do a Transfer to your new job's 401k or open what's called an Individual Retirement Account (IRA) at your bank or brokerage house. That's not a taxable event so you don't have to pay any new income tax on it, but you may have transaction fees deducted if your transfer involves selling of the stocks/funds that you're currently investing in. If you like the product that you're invested in and just want to move the custodian, just find a brokerage house that offers that same investment product and transfer your 401k to an IRA there.

That should really cover the basics for you.
Hope that helps.

You can roll over your 401k to your new employer's plan. If he doesn't have one, either take it out and invest it elsewhere or take it out and put it in the bank. The latter option is not recommended.
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