When staring down a major financial decision, the first question we often ask ourselves is “what is the best way to meet this cost?” As we assess our situation, it is completely natural to look towards one of, if not the largest, numbers on your balance sheet, your 401(k). But how exactly do you access these dollars if the rules say you cannot, without penalty, until you are age 59 ½?
Employees of large corporations may some day be faced with a major decision to make: whether or not to take a buyout offer, voluntarily terminating employment for some sort of financial incentive. An offer of a certain number of weeks or months of severance pay can be very attractive, and may be the right choice, though certainly not an easy one. Here are some considerations for employees to make an informed decision.