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Invest in the best years of your life

Ever change jobs? In or nearing retirement? Everyone should begin to look closely at their funds. If you have retirement accounts, such as IRAs, 401(k)s, 403(b)s, 457(b)s and pension plans at multiple firms, you may want to consider managing your retirement savings by consolidating your accounts to one place.**

There can be many potential benefits to consolidating your money under one roof—for example, more effective management of your asset allocation, diversification, potentially lower fees, more services, and better planning.

At Workers Credit Union one of our CFS Financial Representatives available through CUSO Financial Services, L.P. * can help answer your rollover questions and find ways to potentially:

  • Save money on annual fees
  • Create opportunities to allocate, diversify, and rebalance in one portfolio
  • Simplify required minimum distributions
  • Provide access to one easy consolidated statement

Here are a few of your options you will need to decide on:

TAKE A CASH (LUMP SUM) DISTRIBUTION

Although tempting, taking a lump sum distribution from your retirement accounts can significantly reduce your retirement savings, and is generally not advisable unless you urgently need money and have no other alternatives. Not only will you miss out on the continued tax-deferral of your account, but you’ll also face an immediate tax bite.

LEAVE THE FUNDS THERE

If you’re happy with the investment alternatives offered or you need time to explore other options, you may be able to leave the funds in your old employer’s 401(k) plan where they will continue to grow tax deferred. However, you may not always have a choice. Your employer may require that you withdraw your funds within a certain timeframe once you separate service.

TRANSFER TO NEW EMPLOYER’S RETIREMENT PLAN

Just as you can always withdraw the funds from your 401(k) when you leave your job, you can always roll over your 401(k) funds to your new employer’s retirement plan if the new plan allows it.

ROLLOVER TO AN IRA

You can also roll over your funds to a traditional IRA. You can either transfer the funds to a traditional IRA that you already have, or open a new IRA to receive the funds. There’s no dollar limit on how much 401(k) money you can transfer to an IRA.

Which option is appropriate? Is it better to leave your funds in a 401(k) plan (your current plan or a new employer’s plan), or roll them over into an IRA?

To learn more about consolidating retirement accounts, contact us today to schedule a complimentary, no-obligation appointment. Our CFS* Financial Representatives at Workers Credit Union can help you weigh the options to determine what is right for you.

Disclaimer

* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.

** Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.

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