Suppose you have been employed for about a year and a half and have been offered a better job at a different employer. Assuming you have been taking advantage of the matching 401k plan, what will happen to your 401k if you leave your current job before you are fully vested?

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If you leave your current job for a better job, here are your options for your current 401K plan. 1) Withdraw money as lump-sum. It can reduce your retirement savings and you have to pay for taxes as well as penalty for early withdrawal. 2) You can leave the money in the current 401K plan unless your employer advises you to withdraw it. 3) Transfer funds from your previous employer's 401K plan to your new employer's 401K plan. This is if the new 401K plan allows it. 4) Transfer funds to your IRA through direct rollover.

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