Thinking of Cashing Out? Washington Post (11/25/01) p.B7A; Crenshaw, Albert B.
Lay-offs not only worry many employees in a faltering economy because of a tight job market, but also because 401(k) options are in limbo--should an employee retain his/her 401(k) with their previous employer, cash it out, or roll it over into an IRA or a new employer's plan? Experts agree that unless individuals need to pay house payments or cover essential medical care, they should retain retirement money either with their previous employer or roll it over. IRA accounts may offer more flexibility and control for individuals, but employer plans can reduce fees and offer security.