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Losing your job unexpectedly is never fun.
It usually means confusion, frustration and, all too often, financial turmoil.
In financial emergencies, it might be tempting to tap into yourretirementplan for funds.
But this can be costly, now and later in life.
Heres a primer on your options andhow to keep your retirement plan on track.
The one caveat is that you will not be able to contribute money to it any longer.
But you will continue to enjoy tax-deferred earnings in your investments.
The other option is for them to send you a check to move the funds.
Cash Out
You do have the option of cashing out your retirement plan.
Depending on the account, the taxes could be anywhere from 10% to 25%, per theIRS.
This is because you contributed the money after paying tax on the money.
But remember, any gains will be penalized at withdrawal before age 59 1/2.
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