What happens to my 401k funds and HSA account if I am terminated from a job?

Best Answer:

A Hunch: HSA funds are yours. Although your company might send them to an account for you, the account is 100% yours. You can keep the funds there or move them. Select Accounts is the largest HSA administrator and has some inexpensive options, if you want to consider moving it.

The 401K funds
– any amount that you have contributed is yours. You can keep it with the company or move it. In almost all cases, it makes sense to move it to a IRA.
– any amount your company has contributed on your behalf, is yours as long as it's vested. Most companies vest over a 5-6 year people. Whatever is vested, you would roll over with the IRA.

Other answer:

A Hunch:
hsa funds are yours… although your company might send them to an account for you, the account is 100% yours… you can keep the funds there or move them… select accounts is the largest hsa administrator and has some inexpensive options, if you want to consider moving it…

the 401k funds
– any amount that you have contributed is yours… you can keep it with the company or move it… in almost all cases, it makes sense to move it to a ira…
– any amount your company has contributed on your behalf, is yours as long as it's vested… most companies vest over a 5-6 year people… whatever is vested, you would roll over with the ira…

Kathy S:
You can leave your 401k with your employer, or you can move it to a bank IRA, or you can move it to your new employer.
Alpha Beta:
They remain with the firm that manages them. You can then transfer the money to another financial firm or just keep them there. They are your accounts, not your employers.
Andy L:
They can either stay where they are, but in small 401K accounts, they often want you to transfer the funds out and may issue a check to roll over into another tax advantaged account like an IRA.
You may lose some 401K funds based on employer match not being vested depending upon the program rules.
HSA generally stays where it is. If the 401K is not rolled over, if issued as a check, it is taxable as income in that year and can incur a 10% penalty if under 59 1/2 years old.

You should look up the 401K program rules or ask about it.
Unless they allow it to stay in the current account and you prefer an investment option, you normally roll it into an IRA at a brokerage firm.

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