Series 7 - General Securities Representative Exam
Preview Mode
An 26 year old employee leaves a job at a company. He had a 401(k) plan there. Which of the following is NOT an option for the employee?
He can rollover the 401(k) to a Traditional IRA
A
He can rollover the old 401(k) into a new 401(k) if the new plan allows it
B
He can withdraw the funds and circumvent premature withdrawal penalties
C
He can ask his registered rep to handle the transfer via ACAT to a Traditional IRA
D
Explanations
The 26 year old will face premature distribution penalties as well as income tax