Taking the money and not rolling it into an IRA or another qualified plan within 60 days will trigger federal income tax on it, as well as the 10 percent early withdrawal penalty.

Before leaving a job, people need to check with the benefits coordinator to learn their options. Also find out if the money can be rolled into a 401(k) at the new employer. If so, the current employer should make the check payable to the new employer's plan, not the employee.

Back to Top | Next

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

166