Your 401(k) After a Layoff: What Your Ex-Boss Can Keep
Getting laid off is brutal enough. Don't let your former employer quietly shrink your retirement savings too.
If you just got laid off, your 401(k) is probably the last thing on your mind. Big mistake. How you move that money — and when — can directly determine how much of it you actually keep.
There are two main ways to transfer your workplace retirement savings after leaving a job. One of those paths can cost you real money. That's not a minor footnote — that's the kind of detail that separates traders who protect their capital from those who hand it away without thinking.
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Your former employer does have some leverage here. Depending on vesting schedules and how you choose to handle the account, you could walk away with less than you put in — or at least less than you expected. Understanding the rules before you act is non-negotiable.
The smart move is to know your options cold before you touch anything. A wrong decision on a rollover or a cash-out isn't just a paperwork headache — it can trigger taxes, penalties, and a permanent hit to your long-term wealth. This is one situation where slowing down saves you money.
Continue reading at MarketWatch.com for the full breakdown of both transfer methods and exactly where the costs can bite you.
