It’s been dubbed “The Great Resignation,” as Americans quitting their jobs at record rates month-after-month. If you’re among this movement, don’t forget about your retirement savings at the company you would be leaving. Kyle Whipple, partner and financial advisor at Custom Wealth Solutions in Plymouth, gave some advice to Michigan News Network.
“They say, Well, it’s five, six thousand dollars, or ten. I’m just going to take it as a distribution.’ If you take that money out of your retirement account before 59 and a half, not only are you going to pay taxes at whatever your current income bracket is, you’re also going to get hit with a 10% federal penalty.”
Whipple says aware if you have a Roth account, it can only be rolled over to another Roth. This type of 401(k) and IRA involves after-tax contributions, meaning you don’t get a tax break up front as you do with traditional retirement plans.
