Withdrawal benefits refer to the rights of employees with pension or other retirement plans (e.g. 401(k) plans) to cash out any accumulated funds upon leaving an employer.

If the recipient is younger than age 59 1⁄2, these funds must be rolled into a qualified retirement plan (either at a new employer or in an individual retirement account (IRA)), or else they would typically be subject to an early withdrawal penalty and any deferred tax liability may be owed.