Tag: job changes
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…
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…