Your 401(k) plan is a Retirement account that is sponsored by your employer and can only be funded through regular payroll deductions. So when you leave a job, you stop contributing to your 401(k), but the balance stays in the account until you tell your now ex-employer what to do with it. You can let it sit in your old employer’s account for a long time if you want or, you can choose from three options: cash out, roll over your old 401(k) balance to a new employer’s plan, roll over your 401(k) to an individual retirement account (IRA) of your choice.
Last edited:
