Boss says I can quit my job to cash out 401K and get rehired?
My employer allows people to quit their job for the sole purpose of cashing out their 401K and get the employer and employee contributions; as well as their vacation pay. Once the disbursement is made, they are rehired. All of their benefits are bridged except the 401K the employee has to reapply for this. I know that this is not a smart thing to do but are there any consequences to the 401K plan when you tell employees that you can do this?