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Are 401k plans automatically transferable or does it depend on your employer?


Are 401k plans automatically transferable or does it depend on your employer?

They are usually not transferable while you are still with that employer. Once you leave, you can take all of the contributions that you made (by payroll deduction), but can take only the vested portion of the matching contribution's made by the employer. Anything you take must go into another retirement plan (an IRA, another employer's 401K, etc.) within a short period of time or there are massive taxes and penalties.

When you leave the company you can roll over your money that is vested into another company's 401k or an IRA so you do not get taxed.

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