Скачать или смотреть Why Workers Cash Out Retirement Accounts When Changing Jobs

Are you aware of the consequences of cashing out your retirement funds?
The retirement nest egg thrives on patient growth and compounding over time, crucial for a comfortable retirement.,Over 41% of workers are cashing out their 401(k) plans, a significant rise compared to pre-pandemic levels.,Cashing out triggers tax consequences, as withdrawals are treated as ordinary income subject to the worker's tax rate.,Additionally, there’s a 10% penalty on early withdrawals, further diminishing the available funds.,Workers may lose out on their employer's match if their contributions aren't fully vested.,Cashing out can jeopardize long-term compounding, critical for meeting retirement needs.,Employers may cash out accounts under certain conditions, such as when balances are less than $1,000.,Involuntary rollovers may occur for balances between $1,000 and $5,000, often leading to fees.,Freezing your retirement savings at your previous employer allows time for growth - consider your options carefully.
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