At PSCU, our members' protection is priority number one.
Life can be unpredictable. But for the things you do have control over, like planning for your future, PSCU has the tools to help. Need a little help with more sophisticated investment decisions? No problem. Arrange a free, no-obligation consultation. We have licensed professional advisors on site. You can ask them about:
Planning Ahead: Getting Ready for a Rollover
Generally, if you are a participant in a 401(k) or other company retirement plan, the income earned from your investments escapes tax for as long as you remain a participant of the plan. When you change jobs or retire, you will have several options.
You may be able to keep the money in your former employer's plan or transfer your funds to your new employer's plan (if permitted). Two other choices are also available to everyone: One choice is to take the money in hand, paying tax (and possibly penalties, depending on your age) in the year that you receive the money. The other is to continue to avoid all current tax and potential penalties by opening a Rollover IRA.
Opening a Rollover IRA
Once you choose the rollover option, the most important point to keep in mind is to make advance arrangements with us to receive your distribution directly from your employer. By law, your employer is required to withhold 20% of your distribution for income taxes. One of our Rollover IRA specialists will be glad to explain how the rollover process works, assist you with the paperwork and answer any questions that you may have.
Is it time for a rollover?
Order to make the proper arrangements, it's very important to begin planning for the rollover of your retirement plan distribution in advance of the time that you are leaving your employer. Call on us now. We look forward to serving you.