Reviewing Your Retirement Plan Options
Are you wondering what to do with the money you've saved for your retirement?
Let's dig into your options:
Roll your 401(k) over to your new employer-sponsored plan
With this option, you can continue to contribute new money while enjoying the opportunity for tax-advantaged growth and access to an array of low-cost investments.
However, you may not have access to the funds until a triggering event happens, such as separation of service, and your choice of investment options will be limited to those in the plan.
Roll over to an IRA
This option also allows you to contribute new money and continue enjoying the opportunity for tax-advantaged growth.
In addition, with an IRA, you can receive professional guidance from a financial advisor and will potentially have access to a greater number of investment options.
However, certain withdrawal strategies may be eliminated, such as penalty-free plan distributions at age 55 upon separation of service.
Cash out
Cashing out gives you immediate access to your money, but at a cost. You’ll owe ordinary income tax on the distribution, along with a 10% penalty if you are under age 59½.
You’ll also sacrifice your nest egg’s potential for tax-advantaged growth toward your retirement.
Unsure about what to do next?
Contact the PearlStreet Investment Management team at Stifel.
Together we can evaluate which option is best for you.
Michelle Franks
Vice President/Investments, Branch Manager
[email protected]
(616) 827-4640
Drew Wilson
Senior Portfolio Analyst
[email protected]
(616) 827-4647
Decisions to roll over or transfer retirement plan or IRA assets should be made with careful consideration of the advantages and disadvantages, including investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and your unique financial needs and retirement planning. Neither Stifel nor Stifel Financial Advisors provide recommendations with respect to rollovers from an employer-sponsored retirement plan. Once you inform your Stifel Financial Advisor that you have chosen to roll your retirement assets to an IRA with Stifel, your individual investment needs can be addressed. You should consult with your tax advisor regarding your particular situation as it pertains to tax matters. Stifel does not provide tax advice. You should consult with your tax advisor regarding your particular situation.