time comes.
If you quit or change companies, you have several options for what to do with your 401K. Some companies will allow you to keep it there until age. Otherwise, you have the option of rolling it over into an IRA, or taking a lump sum. If you choose to take the lump sum, you will have to pay taxes on it and that may reduce it significantly.
Moving the money into an IRA is called a "rollover." You can hang onto this IRA, or you may be able to put it into your new company's 401K plan. Most companies will let you do this. If you keep your IRA, you will continue to not pay taxes on it.
If you pay into a 401K plan, you have certain rights that are guaranteed by federal law. Your company is required to make information about their plan available to you, and to disperse the money at the required time.
If you are currently job searching, you might want to find a company with a good 401K plan as part of its benefits. 401Ks help you save for your retirement. They also make companies more attractive to prospective employees. When you are starting at a new company, make sure you get all your questions answered about their plan.
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