I'm changing jobs and need to roll over my 401(k). What are the common mistakes I should avoid according to the AAA Northeast magazine website? Please list at least three specific mistakes mentioned in their article on this topic.
Navigate to the homepage of magazine.northeast.aaa.com. Hover over the 'Money' link in the main navigation. Click on the 'Retirement' link from the dropdown menu. Locate and click on the article titled '401(k) Rollover Mistakes to Avoid'. Read the article to identify at least three specific mistakes related to 401(k) rollovers. List the identified mistakes.
Successfully navigates to the 'Retirement' section of the website. Successfully opens the '401(k) Rollover Mistakes to Avoid' article. Identifies and lists at least three distinct mistakes mentioned in the article regarding 401(k) rollovers. Acceptable mistakes include: - Cashing out a retirement account if under 59 1/2 (paying income taxes and potentially a 10% early withdrawal penalty). - Sticking with your old 401(k) (limits on access, inability to deposit, potential full withdrawal requirement). - Not understanding direct vs. indirect rollovers (missing the 60-day window, leading to taxable withdrawal and penalties).