💼 Don't Leave Your 401(k) Behind When Changing Jobs (AARP Article)

[Winter2025VA]

FROM THE ARTICLE.

6 Reasons Not to Leave a 401(k) Behind When You Switch Jobs.

Rolling retirement savings into a new account can mean more investment options, less hassle.

By Tamara E. Holmes, AARP. Published September 02, 2025.

If you haven’t changed jobs in a while, there’s a good chance you will. The average American has held 12 jobs by the time they turn 56, according to the U.S. Department of Labor, and nearly half of U.S. managers surveyed in January said their companies were likely to lay off employees in 2025.

A job switch doesn’t just change your income; it can also affect your ability to save for retirement. Nearly 6 in 10 U.S. workers have access to a 401(k) plan through their employer. If you’re one of them, you typically have three options when you change jobs: Roll the old 401(k) into another retirement account; cash it out (and pay taxes and a 10 percent penalty if you’re under age 59½); or leave it where it is, with your ex-employer.

USE LINK BELOW TO READ THE ARTICLE.

https://www.aarp.org/money/retirement/what-to-do-401k-changing-jobs/

[Winter2025VA]

Hmmm, I always thought you had to take your 401(k) with you when leaving a job. And ideally "roll" it over into ANOTHER 401(k) with your NEW employer. There was NO choice in the matter.

Take care,

Nicole  💼  (Jobs Forum)

[MatthewP230724 · Accepted solution]

I learned this lesson recently. A year ago, I left a job where I had some money in a 401(k). I also moved out of state. Turns out, my old employer had sent my 401(k) amount as a sort of check through the mail to my old address. When that finally got forwarded to me, it was long past its date of validity. Luckily for me, they sent a new check in the mail to my new address, which I hope to receive soon! Better late than never. 

[Winter2025VA]

Thanks for stopping by Matthew @MatthewP230724 !!! Yikes, glad it worked out for you. I also thought they DIDNOT send checks. Geez, anyone could have stolen it.  😱  With me, I think all was done "electronically" = lol, been over 30 years since my last 401(k) of any importance. I rolled over into my NEW employer's plan. Well now you are alot wiser young man.  👍  Are you going to put check into another 401(k) plan or cash out? Cash out = penalties.  ☹  Nicole!

➡️[*** MATTHEW 

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@MatthewP230724 wrote:

I learned this lesson recently. A year ago, I left a job where I had some money in a 401(k). I also moved out of state. Turns out, my old employer had sent my 401(k) amount as a sort of check through the mail to my old address. When that finally got forwarded to me, it was long past its date of validity. Luckily for me, they sent a new check in the mail to my new address, which I hope to receive soon! Better late than never. 

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[MatthewP230724]

Learning new lessons every day. I will definitely be rolling it over into another plan. My dad is always telling me to put away as much money as I can now into 401(k), Roth IRA, etc. 

[Winter2025VA]

I am glad you are "listening" to your dad Matthew @MatthewP230724 !!! By the time you "retire" - Social Security may NOT be around. Nicole!

➡️[*** MATTHEW 

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@MatthewP230724 wrote:

Learning new lessons every day. I will definitely be rolling it over into another plan. My dad is always telling me to put away as much money as I can now into 401(k), Roth IRA, etc. 

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