Unemployment Compensation Amendment Of 1992

It’s time. Time to leave the company you’ve been working for. But what about your 401(k) plan, which had a matching contribution up to 3.5%? Thanks to the Unemployment Compensation Amendment of 1992, it gets to come with you...even the employer match that’s been paid into it.

The Unemployment Compensation Amendment of 1992 allows ex-employees to keep the money that they invested and saved while working for their employer, no matter the type of pension plan. The amendment writes out the options for how this can be done, including transferring retirement funds into a new account.

Don’t think you can use the Unemployment Compensation Amendment of 1992 to get your hands on your retirement funds without penalty though. You can get the funds directly, but you’ll have to pay a 20% penalty to the IRS on it, so...better to transfer it and not touch it.

No touching!