A study for Putnam Investments shows American workers continue to risk their retirement by cashing in 401(k)s when they change jobs. While the percentage of workers who took the money prematurely has declined, a full 30% of workers said they did not roll over their investments. Premature withdrawals are taxed heavily by the government and workers also lose future earnings.
See Kathy M. Kristof, Los Angeles Times, May 22, 2001