Question about retirement funds..

I have no idea what her definition of 'quite a bit' is, but if she has over $5000, her previous employer can't force her to take it out. As meat said, this is a situation that is full of unknowns. Vanguard is a solid fund manager. But if it were me, I wouldn't just consider them.

As others have pointed out, the #1 thing that should occur if she moves it is that it is rolled over into a rollover IRA. That will protect her from any taxes and penalties for early withdrawal. Other than that, I really can't comment because of all the questions that should be answered.

 

She needs to be careful, you have to structure the rollover correctly to avoid tax penalties. I can not remember all the details off the top of my head but the penalty is ten percent on top of regular tax.