Does 401K Expire? 
Yes a 401 -LRB- k -RRB- plan can be discontinued . There are specific guidelines from ERISA ; however , the plan can be terminated . Many 401 -LRB- k -RRB- plans are the result of terminations of defined benefit pension plans . Generally employees do not lose money when a plan is discontinued ; however , that is not a guarantee . One of the benefits normally extended when a plan is discontinued is that all employees become fully vested and can receive the employers portion of the plan without restriction . These terminations can be tricky from a tax perspective . 