Why you may not want to roll out the money in 401 (k)
Updated: January 7, 2009
According to a recent study, many workers are cashing out their retirement plans when changing jobs, incurring penalties and lost savings. Certified Financial Planner, Curt Anderson says you may want to think twice:
Penalties you could incur
Example:
$10,000 Withdrawal
-25% Federal Tax
- 3% State Tax
-10% IRS Penalty
$ 6,200 Net Withdrawal
You could lose in savings too
Example:
$10,000 Current Value
8% Annual Total Return
35 Years of Growth
$147,000 Ending Value
