Changing jobs is common among Americans, but for many, it means deciding what to do with money in a 401(k) or other employer-sponsored retirement savings plan. When leaving a job, you have the option of withdrawing money from your 401(k). While it may be tempting to gain extra spending money, this is not the best option because the money you withdraw will be taxed. Kelsey Abbott, author of the article "Three Ways to Protect Your 401(k) in a New Job," lists alternative options Americans should consider when changing jobs. They are: leave your money in your former employer's retirement plan; roll your current 401(k) or other retirement savings plan into your new employer's plan; or move the money from your old employer's 401(k) into an IRA.
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