what happens to non-invested 401k funds when you leave an employer?
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Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date
what happens to non-invested 401k funds when you leave an employer? yawnmoth 01-01-2010
Posted by yawnmoth on January 1, 2010, 8:17 pm


Say you have $100k assets in a 401k with only 50% vested. What
happens to the remaining 50% when you switch employers?


Posted by Avrum Lapin on January 1, 2010, 8:40 pm


In article

> Say you have $100k assets in a 401k with only 50% vested. What
> happens to the remaining 50% when you switch employers?

You need to read your plans brochure.

Typically your contribution (or what you bought with it) is always
yours. The vested part of their contribution goes to you, the unvested
bart of their contribution goes back to them


Posted by Rich Carreiro on January 2, 2010, 12:44 am



> In article
>
>> Say you have $100k assets in a 401k with only 50% vested. What
>> happens to the remaining 50% when you switch employers?
>
> You need to read your plans brochure.
>
> Typically your contribution (or what you bought with it) is always
> yours.

Not just "typically". I believe federal law requires that you're
always 100% vested in your own contributions.

> the unvested bart of their contribution goes back to them

True. They can keep it, or they can allocate the forfeited
unvested match to other participants.

--
Rich Carreiro rlc-news@rlcarr.com


Posted by yawnmoth on January 2, 2010, 7:38 am


> In article
>
> > Say you have $100k assets in a 401k with only 50% vested.  What
> > happens to the remaining 50% when you switch employers?
>
> You need to read your plans brochure.
>
> Typically your contribution (or what you bought with it) is always
> yours. The vested part of their contribution goes to you, the unvested
> bart of their contribution goes back to them

If you withdraw money from your 401k early you pay a penalty. Unless
your ex employer puts your unvested funds in another 401k wouldn't
they have to pay a penalty themselves? And if they did put your
unvested funds into another 401k which 401k would they put it in?


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