You can choose how much of your retirement funds you receive as a single payment.
Considerations
- Will be reported as income in the year it’s taken.
- 20% Federal tax withholding applies.
- State taxes and a 10% early distribution penalty may also apply on the taxable account balance.
You can request to have retirement funds sent directly to an IRA with another financial institution.
Considerations
- Maintains tax-deferred status of savings.
- Offers broad range of investment options to fit needs as they change over time.
- Protected from bankruptcy.
- Investment expenses and account fees may be higher than those of employer plans.
You can request to have your retirement funds sent to your company’s new eligible retirement plan, possibly giving you access to other options.
Considerations
- Maintains tax-deferred status of savings.
- Investment choices are limited to those the plan offers.
- Combine other qualified plans or IRA savings into one single account.
- Protected from creditors and bankruptcy.
QUESTIONS? REACH OUT TO US
When deciding between an employer-sponsored plan and IRA, there may be important differences to consider - such as range of investment options, fees and expenses, availability of services, and distribution rules (including differences in applicable taxes and penalties). Investment Advisor Representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered investment adviser. Jonathan DiMarco, Registered Representative of Cetera Advisor Networks. Registered Representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services. Summit and Cetera are affiliated and under separate ownership from any other named entity.