The Cost of Cashing Out of My Employer Plan
PlainTalk® in Brief
If you take a cash distribution to meet financial needs now, you risk
not having enough money later, when you retire.
Consider borrowing from another source or taking only what you need so that you can roll over the balance of your assets without penalty.
If you take your company retirement plan assets in a cash distribution when you leave or retire, you may lose a significant portion of your assets to federal taxes and penalties, as well as to state and local taxes. And, your savings will no longer continue to grow tax-deferred until your retirement.
Use this calculator to see:
- How much of your company retirement plan assets could be consumed by taxes and penalties if you take a cash distribution.
- How these assets could continue to grow tax-deferred if you roll over your assets to an individual retirement account (IRA) or another qualified plan.