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Created with Fabric.js 1.4.5 Leave your 401(k) inyour former employers plan. [But only if they permit it!] Leaving your job? Roll your 401(k) into an individual retirement account (IRA). Starting a new one? Take a lump sum distribution also known as a cash out. To learn more about these options and get your free personalized recommendation please visit: www.title20.org Roll your 401(k) into your new employers plan.[But only if they permit it!] But in the long-term, not all options should be considered equal. Depending on your situation, you typically have four options available. Current age: 30401(k) balance: $10,000Age of retirement: 67Annual rate of return: 6% Discover what you can do with your old 401(k). Result of rolling over your 401(k)savings into an IRA. Required Federal taxwithholding (20%) Potential Federal taxes you'll owe (5%) Potential statetaxes (not estimated) www.title20.org -$500 At the time of retirementin 37 years the potential future value of this IRA could be: $86,361. Consider this example: -$1,000 Early withdrawalpenalty (10%) Roll the savingsinto an IRA. Cash out thesavings. Estimated amountreceived: -$2,000 -$0 Potential futuevalue at age of retirement: -$3,500 Total amount withheld in taxes and penalties: $86,361 $6,500 The information above is for general informational purposes only and should not be considered a recommendation of any of the above options or as specific individualized tax, legal, or investment advice. Where specific advice is necessary or appropriate, Title20 recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager. The information above is for general informational purposes only and should not be considered a recommendation of any of the above options or as specific individualized tax, legal, or investment advice. Where specific advice is necessary or appropriate, Title20 recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager.
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