If you’re getting ready to leave a job, you might be considering cashing out your 401(k) retirement plan. But in addition to losing the benefits your 401(k) plan offers, depending on your age, you’ll likely have to pay a penalty for early withdrawal in addition to paying income tax on the money you receive from cashing out. To avoid these outcomes, it’s important to know what other options are available to you, including not rolling your money out.
Moving your money to your next job
If you’re leaving your current job for another company, check and see if the new company offers a 401(k) plan and that they accept rollovers. If they do, the administrator at your old company can help you move the money to the new employer’s 401(k) plan once you enroll. There are two different ways you can do this. You can either do a … Read more