Retirement - Question 64

What happens to my 401(k) retirement plan if I change jobs?

If you wish, you can leave your 401(k) retirement plan in place at your former employer or you can roll over your retirement plan into an IRA rollover plan. In order to avoid a tax consequence, it is essential for you to roll over your 401(k) plan directly to an IRA rollover at a brokerage firm, mutual fund, or bank. If you take a distribution, twenty percent will be withheld for taxes.