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How to Cash Out a 401k When Terminated

By Frank BassUpdated May 3, 2025 at 8:42 PM

Key Points

  • Many 401(k) plans let you keep your money invested after you leave your job, but you can't make additional contributions.
  • Vesting terms dictate ownership of employer-matched 401(k) funds; leaving before you're fully vested could mean you forfeit some funds your employer contributed.
  • Rolling over a 401(k) to a new employer's plan or into an IRA within 60 days avoids taxes and penalties.

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