401k Plans: If You Leave Your Employer Before Reaching 59 l/2
401k Plans: If You Leave Your Employer Before Reaching 59 l/2
If you have a 401K plan and leave your employer before reaching age 59 1/2, and you are not disabled as defined by the Internal Revenue Code:
- The amount of money you can take depends on how much is vested
- If you do not rollover the amount, you will have to pay income taxes and an early distribution penalty.
The rules are different if you are:
- Age 55 or older and retiring.
- You have a "disability" as defined in your Plan document.