I'm looking for advice on 401(k) rollovers from AAA Northeast magazine. Specifically, what is the main mistake people under 59 1/2 should avoid when rolling over their 401(k)? Also, what general advice does the article offer for choosing a plan and preventing tax issues?
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 the primary mistake highlighted for individuals under 59 1/2. Identify the general advice given in the article regarding choosing a plan and avoiding tax issues.
Successfully navigates to the 'Retirement' section of the website. Successfully opens the '401(k) Rollover Mistakes to Avoid' article. States that the primary mistake highlighted for individuals under 59 1/2 is 'Cashing out a retirement account' because it leads to 'income taxes and potentially a 10% early withdrawal penalty'. States that the general advice is to 'Do your research to choose a plan that is best for you and follow all the proper steps, so you don’t get hit with a big tax bill or lose out on income growth', and suggests 'Meeting with a financial professional'.