What happens to your 401(k) when you change jobs or the plan terminates? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

Details / How it works

Unless specifically excluded, any distribution to an employee of all or any portion of the balance in a qualified plan is an eligible rollover distribution, regardless of whether the benefit includes protections under section 411(d)(6). You may roll it over to an eligible retirement plan — an IRA described in section 408(a) or 408(b), another qualified plan, a 403(a)/403(b) annuity plan, or an eligible section 457(b) deferred compensation plan that separately accounts for the funds. When a plan terminates, an annuity contract may be distributed to the participant; payments under such a qualified plan distributed annuity contract are treated as payments of the balance to the employee's credit and are eligible rollover distributions if they otherwise qualify — even if distributed in connection with the termination.

Numbers & thresholds

Exceptions & edge cases

• Not rollable: required minimum distributions under section 401(a)(9); hardship distributions; substantially equal periodic payments over life/life expectancy or 10+ years; loans deemed distributed under §72(p); corrective distributions of excess deferrals/contributions; dividends on employer securities under §404(k); life-insurance costs includible under §72(m)(3)(B); deemed distributions under §409(p); permissible withdrawals from eligible automatic contribution arrangements (§414(w)); collectible purchases (§408(m)).
• Basis (after-tax) portions may go to an IRA, may reach a qualified trust only by direct trustee-to-trustee transfer, and may not be rolled into a §457(b) plan.
• Non-spouse beneficiaries cannot roll over a plan distribution; a designated beneficiary may instead use a direct trustee-to-trustee transfer to an inherited IRA under §402(c)(11).
• Surviving spouses (and alternate payees under a QDRO) are taxed as if they were the employee and may roll over.