Do you know furloughs make your 401k to be distributed to you automatically?
Or, do they keep it in the current 401k until you are officially laid off or left the company.
Do you know furloughs make your 401k to be distributed to you automatically?
Or, do they keep it in the current 401k until you are officially laid off or left the company.
Nothing will trigger a 401(k) distribution except for termination of employment and the balance is less than $5000. You can leave that 401 money there until you are 70 1/2 and then have to start taking money out.
They will stay right there with Fidelity until/ unless you direct differently. Many advisors recommend that you do a direct rollover into an IRA (not a distribution, a tax free direct transfer from old 401K to new IRA). That can be easily accomplished right there on the Fidelity site.
It will not trigger a distribution. The only thing what will happen is that contributions will stop. You will have to initiate movement of the funds, etc.