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a c h i e v i n g y o u r r e t i r e m e n t g o a l s your m a y m e a n c h a n g i n g focus.

Regardless of what your retirement goals may be, you’ll need income to support them. Most retirement plans are designed to help you accumulate assets – not generate income. So when you get close to retiring, you may need to change your focus from accumulation to income – and make some decisions about how to ensure that your retirement assets last a lifetime.

You have options:

  • Take the money as a lump sum. This will trigger income taxes and a 10% federal income tax penalty if you’re not yet age 59½ and have not met any exceptions.

  • Roll it into an Individual Retirement Account (IRA). An IRA rollover allows you to transfer money from a qualified plan to an IRA without incurring current income taxes. It may also offer you more flexibility and control than other distribution options.*

  • Leave it with your old employer. You may lose some control and access to those assets and may not be allowed to make additional contributions.

  • Transfer some and take the remainder in cash. You will end up paying some taxes on the amount you take in cash (and penalties if you’re not yet age 59½).

  • Roll it into a new employer’s retirement plan. You may be able to do this if you’re starting a new job and are eligible to participate in a new retirement plan, provided your new employer’s plan accepts such rollovers.

Tax results may vary depending on such factors as: the Federal and State(s)’ income tax rates that may apply to you.

  • *

    However, if the rollover from the qualified retirement (other than an IRA) is not a direct rollover (i.e. trustee-to-trustee transfer), the distribution will generally

be subject to a mandatory 20% federal income tax withholding requirement (and may be subject to state income tax withholding also).


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