6. Take special care with your retirement plan benefits
You have probably saved for a number of years to build up a 401(k), 403(b), or other retirement plans. Now is NOT the time to spend those funds.
If you are under 59 1/2, there is usually a 10 percent penalty for early withdrawals; however there are exceptions.You will also pay income taxes on the distribution, so you may be forfeiting 30 to 40 percent of each withdrawal on taxes and penalties.
Many people decide to roll over their 401(k) to an IRA so that they have additional investment choices. However, as long as your balance is $5,000 or greater, you can keep your money in the plan indefinitely. Your ability to borrow from your employer plan usually stops after your termination (see your plan's rules). Also, outstanding loans must be paid off or are counted as a plan withdrawal (again, see your plan documents).