6 ways to screw up your retirement plan
Mistake No. 3: Cashing out in a job change
"I hear excuses like, 'It was easier than rolling it over,' 'I needed the money for moving expenses,' or, the best, 'I used the money to fund my vacation before I started the new job'," Gordon said.
Cashing out at 59 1/2 years of age or younger, he said, carries a 10 percent penalty. "It doesn't make sense to take the funds on which you have been earning less than 2 percent and pay a guaranteed penalty of 10 percent," Gordon said.
Of course, this would be in addition to the taxes you would owe.