What can I do with my 401(k) account when I leave my company?

4 Options For Your Old 401(k)

 
1. Roll over to an IRA

You can rollover your old 401(k) to an IRA to consolidate your retirement accounts in one place.  When you work with Financial Journey Partners, we can help you move the money in your old 401(k) to a new IRA at Fidelity.  When rolling your 401(k) plan to an IRA with Financial Journey Partners, you will have investment choices that includes a wide range of stocks, ETFs and mutual funds.

2. Roll over to a 401(k) at your new employer

If the 401(k) plan at your new employer allows, you can combine your old 401(k) with the 401(k) account you are opening at your new employer.

3. Stay in the plan at your old employer

If permitted by the rules of the 401(k) plan of your old provider, you may be able to leave your old 401(k) account with your old employer.   Usually, your balance must be above $5,000.

4. Close your old 401(k) and take the money in cash

If you withdraw the money from your old 401(k) account, your cash distribution will be subject to state and federal taxes.  If you are younger than 59 ½, federal and state tax penalties may also apply.

For more detailed rules for rolling over your 401(K), download the Special Tax Notice for Your Rollover Options.