Benefits of a Retirement Plan (401(k))
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What are the implications of a 401(k) plan for employees who leave the company? Why would those employees chose to "rollover" their 401(k)? When an employee leaves the company, should the employer literally give the former employee a check for the amount due to them? Why or why not? Why would some former employees prefer a "direct transfer" into their new 401(k) plan?
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The solution discusses the benefits of a retirement plan.
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Once an employee leaves a company, he can rollover his 401(k) to another management firm or can maintain it as is. Employees often decide to take the rollover option because it allows them ...
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