Roll Over Your 401(k) Before You Cash Out | Durham News

Leaving a job? Don’t cash out your 401(k)—it’s a tax nightmare with steep penalties and lost growth. Instead, roll it over into an IRA to keep your money growing tax-deferred, often with more investment options. You can leave it in the old plan, transfer it to a new employer’s 401(k), or move it to an IRA—cashing out is the worst move. Do a direct or indirect rollover (with 60 days for the latter) to avoid taxes and penalties. If you have both pre-tax and after-tax contributions, consider setting up both a traditional and Roth IRA to preserve tax advantages and access tax-free growth later. Listen in comfort: Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN: [email protected] This is an automated, high-level news summary based on public reporting. Report issues to [email protected]. View sources & latest updates: https://sources.thednn.ai/bcb2201dfbdfa9ff