What happens to your 401k after being laid off? I'm asking especially for those who haven't been with Anthem for that long. I'm not among those who were affected in this round but I'm trying to get some information since I doubt these are the last layoffs we'll be having this year.
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Correct response to not "cash out" your 401k
As others mentioned, you could roll it over to an IRA w/o triggering a taxable event or you could roll it over to your next job.
Rolling it over to an IRA would give you control over who the administrator is (in case you don't like Fidelity) and what to invest the money and is the most common approach
There could also be some advantage to leaving the money within the 401k through Anthem Fidelity or to not be in a hurry to roll it over
If you are happy with the investment options offered within the 401k there's a chance the expense ratios are lower than what you would pay on your own as several funds are considered "institutional" level shares due to the size of the plan and come with very low expense ratios
If you choose to leave it for now there's a likelihood that you may get prompted in the future via a letter to take action on the 401k anyway (roll it over or cash it out)
I agree with the posts about getting your money out of the 401k held at Fidelity if you are riffed and moving it to an IRA or the 401k at the next company you work for. I have not been impressed with the Fidelity investment options nor on the returns on those investments. My 401K was doing better when managed by Vanguard.
Depending on the amount you have in the account you can keep it in until you join another company and roll your earnings over into the new plan. You will have increased costs from Fidelity as a former employee. Rolling the money over into an IRA may be better, based upon timeline and costs.
they riffed me right before vested and I lost the match...oh but first they replaced me with someone 20 years younger who I had to train.
Roll it over, way better choices and cash management than to let it sit with an old employer!
Roll it off to an IRA account specially if you are already vested. Never leave your 401K after you leave the company.
I would not cash out any of it. You’ll be smacked with taxes. Roll it over. Don’t let it sit. Get out of that 401k vendor they switched to about 2 years ago. I lost a ton of money with Fidelity. As soon as I rolled it I recovered my losses and gained.
Many of us have been where you are. Yes it is scary. Yes it hurts. But there is better life out there.
You can roll it over to another account or leave it there as long as you like. I would bit cash it out unless you’re about to lose your house or something extreme.
100% of the money you contributed remains yours. If you have been there 2 years, then you are vested and keep their contributions. If not, you lose that money
Check if you have 100% investment (this is based on time). If you do - you can either keep it in the same plan for accruals or roll-over to your new companies plan.
I was laid off by Anthem 2 years ago and rolled over my 401K to my current companies plan - I harm done :-)