Business1 min
Transfer 401K to IRA without losing employer funds
Moving a 401K to an IRA can preserve employer contributions if done correctly.
What happened
An employee with a Fidelity 401K, having no vested employer contributions, wonders if transferring to an IRA will affect those contributions. Transferring a 401K to an IRA is a rollover that keeps the funds in tax‑deferred status. The employer contributions remain intact if the rollover is executed properly.
Why it matters
Understanding rollover rules helps employees avoid unintended tax consequences and maintain their retirement savings growth.
Who is affected
Employees with 401K plans considering a rollover to an IRA
Should I do anything?
Nothing to do — just stay aware.