Upon termination of employment,an employee can keep his or her savings in a tax-sheltered account by transferring the retirement funds from the employer's account to another account without penalty in a protection called

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The protection that allows an employee to transfer retirement funds from an employer's account to another account without penalty is called portability. This allows the employee to keep their savings in a tax-sheltered account even after termination of employment. Severance refers to the compensation or benefits that an employee receives upon termination, while vesting refers to the process by which an employee becomes entitled to a certain percentage of their employer's contributions to a retirement plan over time. Sheltering is not a term commonly used in this context.

Upon Termination of Employment,an Employee Can Keep His or Her