This might have been answered before, but I can't find it, so I figured I'd ask. What happens to our 401k after layoff? Especially for those who have been with the company for under five years?
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Thank you all for answers, I really appreciate it.
Does Bnym benefit in any way if you leave your 401k there when you are laid off? I’d move the balance somewhere else in a NY minute if I knew that they were making money off of me after I got canned.
Just to correct something that was stated on this thread regarding repaying a 401K loan after leaving BNYM: You have 90 days to either repay the loan in full or BEGIN making your normal monthly payments to Voya via direct deposit from you checking account.
I left the bank for another job 17 months ago and I am still repaying my 401k loan. I have one more year to go!
One other thing to note is that your contributions are always yours, fully vested immediately. It is only the company match that requires length of service to be fully vested. Depending on your grade level and years of service, and if you have stock options or other tiered incentives, it may get complicated. You should still be able to access your account from home, and all the links should be in your exit package. I have heard HR has been difficult to contact and of limited assistance even when you get someone, so use whatever Voya resources you can to help you navigate. Best of luck, and I am sorry this has happened.
Balances under $5,000 must be rolled to either a new employer's plan or a Rollover IRA. Do not suggest you cash out, you will be hit with a 10% early withdrawal penalty if you are younger than 59.5 years of age in addition to ordinary income taxes on the amount withdrawn.
other than that, GK's advice above is spot on.
You can also leave it with voya until you are ready to transfer to another plan. Example: I have a 401k account/balance with a company that I left 9 years ago; been too lazy to transfer it. Sometimes if you have under a threshold, usually around $3k, they'll force it into a Transitional IRA. Not sure if Voya does that. Also, if you have any loans you must pay them within 90 days or you get taxed by the IRS as income with a high tax rate for early distribution of retirement funds.
hi..there are a few rules but at a high level.... you have choices. 1. depending on the balance you can leave it at BK. 2. You can roll the 401k balance to an IRA. 3. Take a distribution in cash. 4. If you start at an other employer their plan might also take the assets. Suggest you read up and determine which is best for you. You choice may have tax consequences. Good luck.