Daryl,age 42,quit his job.His employer offered a defined contribution pension plan,and the balance in the account was $30,000 when Daryl quit.He can avoid immediate taxation of these funds by

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By using an IRA rollover account, Daryl can transfer the balance of his defined contribution pension plan into an IRA account, which will allow him to avoid immediate taxation. This option also gives him more control over his investments and the flexibility to choose when to withdraw the funds. Taking a lump-sum distribution or receiving the money through installments may result in immediate taxation and penalties. Using the funds to purchase common stock issued by the former employer is risky as it puts all of Daryl's retirement savings into one company, potentially harming his diversification strategy.

Daryl,age 42,quit His Job