Question

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?

Answer 1

Leaving your current job with 401k plan that is not fully vested?

You will lose the money that your employer has contributed to your 401K plan.

When you get a 401K plan, a portion of your paycheck is deducted and placed on the plan. The employer will also contribute a portion to your 401k plan.

But, if you are not fully vested and you quit your job, the total amount of your 401k plan is not wholly yours. You only get what you contributed.