When workers change jobs, their retirement savings in employer-sponsored plans (employer plans) tend to get withdrawn and spent. It’s an understandable phenomenon, albeit an unfortunate one. We’ll show you how to avoid the trap of cashing in your retirement savings and how to transfer your funds when you change jobs.
Key Takeaways
Avoid the trap of cashing in your retirement savings by transferring your funds when you change jobs.
It is now mandatory for employers to automatically send plan balances to an IRA if the account balance is between $1,000 and $5,000—unless the employee provides written permission to have …
