When you leave a job, especially due to a layoff, you may wonder what happens to your 401(k) retirement savings. There are generally two main options for handling your 401(k): rolling it over into a new retirement account or cashing it out.
Cashing out your 401(k) can come with significant tax implications and penalties, which can reduce your savings considerably. It's essential to understand these costs before making a decision.
Your former employer should not withhold your 401(k) funds without a valid reason. Familiarizing yourself with your rights can help you navigate this situation effectively.