(Closed) What to do with 401k after leaving job

posted 4 years ago in Money
Post # 3
1725 posts
Bumble bee
  • Wedding: December 2014 - 13th ~ TN

@weddingbee098:  If you dont need the money, roll it over. If you withdraw it, be prepared to pay some taxes on it.

Post # 4
205 posts
Helper bee
  • Wedding: March 2014

@weddingbee098:  Agree with PP – if you don’t need the money and are not getting another job, I would just leave the money where it is in the 401k. 

If you are getting another job, you’ll need to talk to your new (and possibly former) finance department to get your current 401k from employer A to rollover into employer B’s 401k plan. That just means that you’ll take the money from your current 401k and put it in your new 401k – that way you don’t have 2 separate 401k accounts. 

Post # 5
18622 posts
Honey Beekeeper
  • Wedding: June 2009

@weddingbee098:  I rolled mine into a Rollover IRA with my local institution.  It is better to keep the money in an account so you can keep it growing and avoid paying withdrawal penalties and taxes.

Post # 6
354 posts
Helper bee
  • Wedding: October 2013

Roll it over or leave it alone (if you can). I have 401ks with 2 former companies. They still appreciate.


One company forced me to sell, so I rolled it over. If you close it and keep the money there’s a huge tax penalty – so don’t do this.

Post # 7
13993 posts
Honey Beekeeper
  • Wedding: June 2011

I rolled it over to a traditional IRA. I had the choice to take it as a lump sum, but there was no way I was going to do that since I’d have to pay taxes on it all.

Post # 8
1264 posts
Bumble bee

I rolled mine over into a Roth IRA.

Post # 9
472 posts
Helper bee
  • Wedding: March 2014

@weddingbee098:  Definitely roll it over, either in to your new 401k (but only if for some reason it’s an exceptionally good plan) or to an IRA. Any financial company will be delighted to help you with this, you just need your account information and they’ll show you how to do all the paperwork. Do NOT take a disbursement from it even if you intend to put the money back in to savings or an IRA because once you touch it, you have to pay taxes on it- it needs to roll straight from the 401k to the new retirement account.

Only touch that money if you’re in true financial hardship; money saved early has more time to grow through compound interest, and it’s much more effective to save now than it will be later in life.  

The topic ‘What to do with 401k after leaving job’ is closed to new replies.

Get our weekly roundup of the best of Weddingbee.
I agree to receive emails from the site. I can withdraw my consent at any time by unsubscribing.

Find Amazing Vendors