Explore your options and weigh the pros and cons

ROLL OVER TO AN IRA

ADVANTAGES

•    Typically a wider range of investment options.

•    Additional contributions allowed.

•    Option to move assets to a future employer’s plan.

POTENTIAL DRAWBACKS

•    No loans.

•    Certain 401(k) investments may not be available.

 

Remain in your 401(k) or other employer-sponsored plan

ADVANTAGES

•    Access to certain investments that may not be available outside of your 401(k).

POTENTIAL DRAWBACKS

•    Limited to the plan’s investment options.

•    Additional contributions restricted or not allowed.

•    $5,000 minimum balance typically required to remain in plan.

 

 

Transfer to another employer-sponsored plan

ADVANTAGES

•    Loans may be allowed.

POTENTIAL DRAWBACKS

•    Limited to the plan’s investment options.

•    Possible waiting period before transfer can take place.

 

 

Cash out your 401(k) account

ADVANTAGES

•    Money immediately available to cover current expenses.

POTENTIAL DRAWBACKS

•    20% withheld for income taxes.

•    10% early withdrawal penalty if you’re under age 59½.1

•    Loss of future tax-advantaged growth.

 

FOOTNOTE

1 Distributions received before you’re age 59½ may not be subject to the 10% federal penalty tax if the distribution is due to your disability or death; is distributed by a reservist who was ordered or called to active duty after September 11, 2001, for at least 180 days; is part of a series of substantially equal periodic payments taken under IRS guidelines; or is for certain unreimbursed medical expenses, an IRS levy, or if you left your job during or after the year you turned age 55.

There are important factors to consider when rolling over assets to an IRA or leaving assets in an employer retirement plan account. These factors include, but are not limited to, investment options in each type of account, fees and expenses, available services, potential withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, and tax consequences of rolling over employer stock to an IRA.

You may wish to consult a tax advisor about your situation.

To learn more about the professional history of our financial advisor(s), please visit FINRA's BrokerCheck.

Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.

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IMPORTANT CONSUMER INFORMATION A Broker/dealer, investment adviser, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker/dealer, investment, adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.