ROLL WITH US
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.
Contact us to schedule a complimentary, no-obligation appointment.
Give us a call at 800-221-4020.
Our member service representatives will be happy to assist you.