Question for the Money Doctors
Question submitted on Nov 19, 2018.
QuestionI am planning on leaving my job...can I cash out my 401k?
I just curious how this works.
Hi Curious, Whenever you leave your job, you can take your 401k with you. You have three options:
1. You can request the money and spend it. We don't recommend this since you will lose up to 40% to penalties and taxes.
2. You may be able to leave the money where it is or
3. You can "roll over" the money directly into an Individual Retirement Plan (IRA) or a 401k with your new employer. This is what we recommend since this option is tax and penalty free.
For additional information visit http://www.360financialliteracy.org/