Leaving Your Job? Don’t Forget to Pack Your 401k

Referring to 2021 as “The Great Resignation” isn't an exaggeration. An average of almost 4 million resignations took place every month in 2021.

Many of these resignations left abandoned retirement accounts. However, you can leave your job and take your retirement money with you.

Plan your rollover

If you're making plans to leave your job, check in on your retirement account before your last day. Make sure you can access your plan with a non-company login.

If you've got a new job and a new 401(k), you should be able to move the account over to your new setup. If you don't have a new 401(k) or your job doesn't offer one, there are other options.

You've likely heard of an Individual Retirement Account or IRA. IRAs and 401(k)s are both retirement-saving options but just a bit different from each other.

Unlike a 401(k), an IRA is a plan that isn't tied to work. Anyone can have one, regardless of work status. Moving your 401(k) to an IRA, or rolling it over, protects the money from immediate tax consequences.

What happens if you don’t move your 401(k) when you leave your job?

When you leave an account behind, nothing happens to it. In most cases, you're not required to take it.

Suppose you didn't touch it before you left. In that case, it could still be managed by your old employer's custodian, including the investment options you set up for it.

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