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Do I have to roll over when I leave my job?
Do I have to roll over when I leave my job?
Brianna LaCanfora avatar
Written by Brianna LaCanfora
Updated over 8 months ago

Nope!

When you leave a job where you had a 401(k), you won't be able to contribute to it anymore but you generally have 4 options for the funds in your account:

  1. Leave it with your former employer’s plan — this is a good option if you’re happy with the investment options and fees in your plan. It can be harder to keep track of as your employer can change providers or initiate a ‘forced rollover’ if your plan has a small enough balance.

  2. Roll it over into an IRA — this is a popular choice because IRAs typically have lower fees and aren’t tied to your employer so they can be easier to keep track of.

  3. Roll it over into another 401(k) — if you have a 401(k) at your current job, you may be able to move your old 401(k) funds into your new account if the plan allows, but it’s not always possible.

  4. Cash out — If you’re under 59 1/2 then a 401(k) withdrawal will usually lead to taxes and penalties on the money you with draw. You’ll also give up the opportunity for your 401(k) savings to grow tax-free over decades.

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