CONSOLIDATE YOUR ASSETS Consider an IRA rollover. If you are making a career move or getting ready to retire, you may be eligible to receive a retirement plan payout. If you simply take the payout, you’ll owe income taxes on the distribution, and possibly an early withdrawal penalty as well. Rolling the distribution into an IRA may be a far better choice. Why roll your funds into an IRA? Rolling your funds into an IRA allows you to continue to benefit from tax deferral. You may have more investment options to choose from than your current plan offers. And, if you have an existing IRA or additional accounts in other employer-sponsored plans, a rollover IRA allows you to consolidate and streamline your retirement assets in a single, easy-to-manage account. Tax deferral is an important benefit. By rolling over your distribution and postponing income taxes, you’ll have more money available for investment. In addition, you’ll continue to benefit from potential tax-deferred growth on your rollover IRA investments. You’ll pay income taxes only when you withdraw funds from your IRA. Over several years, the benefits of continuing tax deferral can make a big difference. You can accomplish a tax-deferred rollover in two ways: by arranging for a trustee-to-trustee transfer (a “direct rollover”) or by receiving the plan distribution and rolling it over to an IRA within 60 days.
12
Made with FlippingBook - Online catalogs