This site may contain affiliate links. We may earn a commission if you sign up through our links. Content is for educational purposes only and is not financial, investment, tax, or legal advice. Consult a qualified professional before making financial decisions.

Back to Glossary

Portability

Plan Features

The ability for an employee to take their vested retirement savings with them when they change jobs or leave an employer. 401(k) balances can typically be rolled over to a new employer's plan or to an IRA. Portability is a key advantage of defined contribution plans compared to traditional pensions.

Related Terms