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What Happens to My Vested Money When I Leave My Job?

Because all contributions to IRA-based plans are immediately vested, changing jobs is simple. When you leave a job, you have a few choices for handling your retirement savings:

1. Leave it where it is
You can keep your IRA with your current custodian. Your account stays invested and continues to grow based on market performance.

2. Roll it over
You can move your savings to another IRA or into a retirement plan offered by your new employer. A rollover helps you keep your savings in one place and maintain tax advantages.

3. Cash out
You’re allowed to withdraw your funds, but this option typically comes with income taxes and early withdrawal penalties if you’re under age 59½. This makes cashing out the least favorable option for long-term savings.

What you'll never lose: With 100% immediate vesting, you always keep the employer contributions in your account. Your savings are yours to take with you whenever you move to a new job.