What happens to my 401k if I leave my job?

When you leave your job, your 401k money is yours to keep regardless of what you do next. You have a few options. You can leave the money in your former employer's plan if they allow it, though some plans require you to move it if your balance is below a certain threshold. You can roll it over into your new employer's 401k plan or into an individual IRA, which lets the money continue growing tax-deferred. You can also cash it out, but that triggers income taxes plus a 10% early withdrawal penalty if you're under 59½. Rolling it over into an IRA is usually the most flexible option since it gives you more investment choices and avoids any immediate tax consequences.