What Happens to My 401(k) When I Quit?
Your contributions stay yours. Unvested employer money may be forfeited, outstanding loans may come due, and small balances may be moved out automatically. Here's a checklist for the last day.
Quick answer
Your own contributions and their earnings remain yours. Unvested employer contributions may be forfeited. An outstanding 401(k) loan may need to be repaid or rolled over by your tax filing deadline to avoid tax. Plans may automatically move small balances out of the plan. You then decide whether to leave, roll over, or withdraw the money.
What changes when you leave
| Item | What happens |
|---|---|
| Your contributions | Always 100% vested |
| Employer contributions | Kept only to the extent vested; see 401(k) basics |
| Outstanding loan | May become due; unpaid amount can become a taxable distribution; see 401(k) loans |
| Small balances | Plans may cash out or roll small balances to an IRA under plan rules |
| New contributions | Stop with your last paycheck |
Before your last day
- Check your vesting date; a few weeks can matter.
- Find out how any loan is handled.
- Confirm your beneficiaries.
- Download recent statements.
- Decide where the money goes next; see what to do with an old 401(k).
The takeaway
Quitting doesn't erase your 401(k), but vesting, loans, and small-balance rules can cost you if you don't check them before you leave.
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