If you’ve taken advantage of your employer’s 401K program to get a leg up on retirement savings, you can be confident that you’ve made a great choice in taking part in the program.

But, what happens to your 401K payments if that company no longer employs you? What happens to the money you have had deducted from your pay all this time?

Typically, you would request a “rollover,” when you can either transfer your savings into a new 401k with your new employer or into an IRA (Individual Retirement Account).  

It’s generally a bad idea to try and cash out your 401k, as you’ll likely be on the hook for fees and taxes on the balance – and potential holding fees. The exception to this would be if your contributions totaled under $1000, in which case a cashout is the default option.  

In some rare cases, when a company ceases to exist (either by being bought out or going bankrupt), your 401k may go with it. In these cases, the 401k will always be serviced by a financial company and not directly by your employer – so your investments will not vanish along with their liquidated assets. 

If you’ve never looked at a 401k and your employer offers it, now is as good a time as any to start. If you’re not sure where to begin, we can help! Just give us a call at 513-563-PLAN (7526) or book a time online that works for you.