3 Ways Cash Leaks Out of Your 401(k)  And how much each type of
loss will harm your nest egg   While many Americans have valid
reasons for raiding their 401(k) during their working years,
these early withdrawals can have dire consequences in
retirement. Fees and penalties for early distributions can
further eat away at your retirement account balance. About 15
percent of 401(k) participants spend some of their nest egg
before they’re ready to leave the workforce, according to new
Government Accountability Office report. The study identifies
three major ways money leaks out of 401(k)s before retirement
and how much each one affects your financial security.  [See IRA
and 403(b) Owners Pay Higher Fees than 401(k) Savers.]
Cashouts. When you leave your job you are given an opportunity
to cash out your 401(k). American workers took about $74 billion
from their retirement accounts when they job hopped in 2006. But
when you cash out a 401(k), typically 20 percent of your account
balance is withheld by your employer