Laid Off? Here’s What to Do With Your Retirement Plan (Besides Panic)

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So, you’ve been laid off. First off—deep breath. It’s not the end of the world, even if it feels like it. While you’re updating your resume, brushing up on your LinkedIn game, and maybe indulging in a little stress-snacking (we won’t judge), there’s one big financial question looming: What do you do with your retirement plan?

The nest egg. The “I’ll deal with it later” fund. Well, later is now. And thankfully, you’ve got options.

1. Leave It Right Where It Is

If you don’t have immediate plans to cash out (and you probably shouldn’t), you can typically leave your 401(k) with your former employer. It stays invested, hopefully growing, and you avoid any unnecessary tax headaches. The downside? You might forget about it, and your old employer could change plan providers, leading to a fun game of financial hide-and-seek later.

2. Roll It Into an IRA