Warning About Cashing Out 401(k)

Accounting Technology, July, 2006

NASD has issued an Investor Alert, warning investors that cashing out of even a modest amount of their 401(k) assets can have a potentially devastating impact on their retirement savings. A recent study indicates that 45 percent of employees cash out their 401(k) plans when they change jobs. The Alert explains that there are other options, including leaving the money in the former employer's plan, rolling it over to the new employer's plan (if that plan accepts transfers), or rolling it over into an IRA.

(c) 2006 Accounting Technology and SourceMedia, Inc. All Rights Reserved.