Whether you are changing jobs or facing retirement, you have important decisions to make regarding the retirement assets you have accumulated over the years. Our financial planners will analyze the distribution options available to you and make recommendations that minimize taxable implications and penalties* while maximizing income.
Your account options include:
Roll it into an IRA. The rollover process is easy and allows your account to continue to be tax deferred and invested wisely. With access to more investment options, an IRA offers the benefits of increased flexibility and control over your money. Roth IRA conversions are available as well.
Leave it where it is. You may be able to keep your retirement account in your current plan. In some cases, accounts valued at $5,000 or less may automatically be issued as a taxable distribution (less the mandatory 20 percent federal tax withholding).
Roll it into a new plan. With a new employer, you may be able to roll your account into the new plan.
Take it in cash. You can always decide to cash out of your plan and receive a lump-sum distribution. However, your assets will be subject to taxes and penalties. This is usually the most costly decision. Cash distributions are subject to a mandatory 20 percent federal income tax withholding. You may still owe additional federal, state, and/or local taxes (plus any penalties).
Create a customized distribution strategy. With the help of your financial planner, you may choose to combine several options to create a plan that facilitates your retirement goals and objectives.