Rollover Options
Deciding what to do with the retirement benefits in your company savings plan as you change jobs or retire? It's a decision that can be every bit as important as your decision to participate and contribute in the first place. To avoid costly taxes and penalties, you may want to consider one or more of the following available options:
- Do nothing – Leave your money where it is. You can continue to monitor your investments and make adjustments to your asset allocation as needed.
- Roll it over – Move your money into an IRA or other qualified plan*. Moving your money into another tax-qualified retirement account is a seamless process that allows your money to continue to grow tax-deferred.
- Purchase an annuity – Turn your money into guaranteed income for life. An annuity offers you the benefits of tax-deferred income with payments you can count on over a specified period of time.
- Take it and run – Withdraw your money in one lump sum. You’ll immediately have to pay federal income taxes on the entire amount, plus a 10 percent penalty if you’re under the age of 59½.