Cashing in Retirement?

Thinking about cashing in your retirement when you change jobs? Think twice!

When you leave an employer, it can be tempting to take a lump sum from your 401(k) or retirement plan -- but that decision can come with big tax consequences.

The amount you cash out is fully taxable as income in the year you receive it. If you're under age 59 1/2, you'll also face an additional 10% early withdrawal penalty.

Instead of cashing out, consider doing a Direct Rollover to an IRA. A rollover keeps your money working for you -- no taxes, no penalties and continued growth potential.