What Happens to A 401(K) After You Leave Your Job?
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Once you have made a decision about where you want your 401(k) balance to go, do the following:
- Ask the 401(k) plan administrator at your current employer about their distribution/rollover procedures.
- Provide the 401(k) plan administrator at your current employer with clear, written instructions about where you want the money to go.
- Make sure the institution that will be receiving your 401(k) rollover gets a copy of those instructions too.
- Check to see that the balance was received once you make the move to your new employer.
If possible, line up as much of this as you can before your last day of work, because timing is crucial.
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