401KRollover

5301 E. State St., Ste.106, Rockford IL. 61108Phone: (800) 3491484 · Fax: (815) 2823309Torbey@torbeyfinancial.com · www.torbeyfinancial.com

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Is your employment changing? Consider a rollover

According to the Bureau of Labor Statistics, American workers change employers every four years.

When your employment changes, it is important to make critical and informative decisions that effect your future retirement. What you do with your employer-sponsored retirement plan balance can mean the difference between staying on course and saving towards a comfortable, secure retirement, or taking a giant leap back to square one.

You have alternatives.

ü	Roll the balance to an IRA.

Maintain the advantageous tax-deferred status, nearly unlimited investment options and greater control over withdrawals and distributions than an employer sponsored plans.

ü	Roll the balance to a new employer’s plan.

Some employers plans don not accept rollovers. Investment options will be limited and there may be higher fees than an IRA.

ü	Take a cash distribution.

Some employers require distribution upon leaving a job. The employer must be notified or your personal directions for distribution; or a check for the balance minus 20% for taxes will be issued, forfeiting rollover advantages. An Additional 10% tax penalty may be incurred if you are under age 59½. Keep in mind that a substantial cash distribution will likely bump you into a higher tax bracket.

It’s important to keep in mind the reason you started your retirement plan in the first place: To provide income during retirement. If you cash out when you leave an employer, your’re defeating your purpose.