Cashing out your retirement plan account when you leave your job is certainly tempting. However, cashing out could leave you with a lot less in retirement. You may have to pay taxes and penalties, and you’ll also be losing the tax benefits that come with a retirement plan account.
Benefits of cashing out
Most financial experts advise against cashing out. However, withdrawing your plan balance does give you cash in hand. You’ll have money to take care of current needs.