What happens to my account when I leave my job?
When you leave your employer, you generally have several options:
Depending on your plan’s rules, you may:
- Rollover your balance to a new employer’s retirement plan (if allowed)
- Rollover your balance to an Individual Retirement Account (IRA)
- Leave your money in the former employer’s plan (if your balance is above the plan’s minimum, often $7,000)
- Cash out your account
If you cash out:
- You may owe a 10% early withdrawal penalty if under age 59½.
- 20% federal tax withholding generally applies.
- State taxes may also apply.
Rolling your funds into another qualified retirement account helps you avoid immediate taxes and penalties.
If you'd like help evaluating your options, our team is available to guide you through the decision-making process. Schedule a meeting.