Fourth Quarter 2023
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which collectively could sharply reduce the amount you retain. Option 4: Transfer into an IRA You can also roll all or part of your money into an Individual Retirement Account (IRA). If you do so within 60 days, you’ll avoid both penalties and withholding taxes. An IRA offers continued tax deferral for retirement, though you should check to see whether fees or commissions will be assessed. Depending on your circumstances, the money that you accumulate in an employer’s plan may be a major source of retirement income. How you choose to manage it can have a profound impact on your retirement savings. Discussing the options with a financial professional can help maximize your savings. Kathy or Niko may be reached at 760.439.6960, Looking to Save on Your Insurance? Do your insurance premiums keep going up every year? Frontwave Insurance Services can help! A one- stop shop for all of your insurance needs, Frontwave Insurance Services can find the best insurance for you at the best price. Get a free, no obligation insurance quote by visiting frontwavecu.com/insurance or calling 844.788.0820. • Auto Insurance • Motorcycle Insurance kathy.chesney@lpl.com or niko.z.pandeleos@lpl.com.
MANAGING YOUR RETIREMENT
PLAN WITH A NEW JOB
Provided by Kathy Chesney, ChFC, CLU and Niko Pandeleos, Associate Financial Advisor To maximize your savings, understand your options – if any – for your retirement plan when you switch jobs. Changing jobs can impact your retirement plan. To minimize
Typically, annual distributions must begin after you reach age 73. Option 2: Let ‘Er Roll You can transfer the money into your new employer’s plan, which continues your tax-deferred growth potential. However, there may be rules associated with rolling over your money. Review your new plan and restrictions carefully before selecting this option. If you take money out, withdrawals will be taxed at current rates, with those made before you reach age 59 1/2 subject to a 10% additional federal tax. Option 3: Cash Out You may elect to withdraw your money in cash either in a lump sum or in installments, though you’ll face tax consequences: Distributions incur a 20% federal withholding as well as standard income tax. And if you’re under age 59 1/2, you’ll pay an additional 10% federal tax. State and local taxes may also apply,
disruptions to your contributions and the vested portion of your previous employer’s contributions, it’s important to understand the choices you may have when you make a career transition. We offer the following key considerations: Option 1: Stay Your previous employer may allow you to keep the money in your plan, an attractive option that keeps things undisturbed while allowing you to accumulate tax-deferred earnings potential. While you cannot make further contributions, you still maintain control of how the money is invested.
• Home Insurance • Renters Insurance • Life Insurance • Pet Insurance • And More!
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Insurance products are offered through Frontwave Insurance Services, LLC, a subsidiary of Frontwave Credit Union. Insurance offered is not a deposit and is not federally insured or issued by or guaranteed by Frontwave. Insurance may be required as a condition of credit for some Frontwave loans and may be purchased from an agent or insurance company of the member’s choice.
Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value
Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
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