I have a 401k question...

[Argo]

For all those who are more experienced in this. I just became elligible for 401k, and I want to start investing. However, I have a couple of questions. Firstly, what happens to my 401k if I change jobs? Secondly, if such need arises, can I withdraw anything from my 401k? Or is it untouchable until I retire?

 

[axelfox]

I think you can rollover your 401k to your new job, but thats the extent to my knowledge.

That'll be 500 dollars

 

[Boogak]

You can roll over the amount of your current 401k to the new one your new employer will have. Generally, it's really frowned upon to touch your 401k funds. You can dip into it, but you'll take a major tax hit on it.

 

[RossMAN]

Firstly, what happens to my 401k if I change jobs?

It varies from 401k to 401k. Whatever happens you probably won't "lose" your money you'll be left with two options:
1) Cash out, this is not recommended since there are severe penalties, fees and taxes which you'll have to pay. Figure around 40-60%.
2) Roll over to your own private 401k with a company like Janus, Fidelity, Dreyfus, etc. or you can roll it over to your new employer's 401k and continue contributing there.

Secondly, if such need arises, can I withdraw anything from my 401k? Or is it untouchable until I retire?

Some 401k's (like mine) allow you to take out a loan of 50% of your vested balance which is really nice because 1) there was NO credit inquiry, 2) the interest rate for me was +2 above prime which is around 11% I think and 3) the payments are taken directly from my payroll making it a cinch to pay back.

When you leave the company you could cash out your 401k balance but be ready for severe penalties, fees and taxes.