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    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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    Solution Preview

    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 ...

    Solution Summary

    The solution discusses the benefits of a retirement plan.