The Fundamentals of 401(k) Cashout Leakage

What is 401(k) Cashout Leakage?

Cashout leakage is the voluntary, premature withdrawal of tax-qualified retirement savings following a job change, and prior to normal retirement age, which results in the payment of taxes and penalties. 401(k) cashout leakage is a serious problem for our nation. Each year, up to 6 million participants cash out, electing to use their tax-qualified savings for purposes other than retirement and becoming retirement system dropouts.

Research Papers:

On Cashout Leakage:

On the Efficacy of Retirement Savings Portability in Reducing Cashout Leakage




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The Fundamentals of 401(k) Cashout Leakage

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