Tag: job changes
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When it makes sense to dip into your retirement account — and when it doesn’t. When policymakers consider leakages from 401(k) plans, they must balance two conflicting goals: 1) keeping tax favored savings in the plan so that funds are available at retirement; and allowing access to participants who need their money, which can encourag…
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These accounts must be more portable. When participants change jobs, they have four options with regard to their 401(k) assets: (1) leave balances in the previous employer’s plan; (2) roll over balances to the new employer’s plan; (3) roll over balances to an Individual Retirement Account (IRA); or (4) cash out. In some cases, t…