Explore Retirement Distribution Options How long do I need to work? How much should I have set aside? Where should I invest my retirement funds? What are the tax implications of distribution? Retirement may seem like it has more questions than answers, but that’s where a knowledgeable LPL Financial Advisor can be invaluable. It’s important to get the guidance you need to realize the retirement you deserve. What Are My Distribution Options? A distribution is a payout of the money in your retirement savings plan, including amounts you contributed, the vested portion of amounts your employer contributed and any earnings on those contributions. Your distribution options may include the following: #1 Keep Your Employer’s Plan—if your retirement plan balance is $5,000+ when you finish employment, you can leave the funds there, depending on the plan’s rules. Keep in mind that you must begin taking distributions by April 1 of the year following the year you turn 70 1/2. This option may appeal to you if your spouse is still working or if you have other income sources. You will remain eligible for tax-deferred compounding of future earnings and maintain control over investments; however, you will no longer be able to make contributions. #2 Use a Direct Rollover—If you choose to move your money into another retirement account or your new employer’s retirement savings plan, that is a direct rollover. If you are under age 55, a direct rollover may be a good option to avoid significant taxes and penalty fees. You do not receive funds; however, you are able to continue making contributions. #3 Choose Cash Distribution—If you are in immediate need of funds, whether a lump sum or installments, your plan may allow you to choose cash distribution. You will likely have to pay substantial taxes, particularly if you’re under age 55. In addition, you may also have a 10% penalty deducted for early withdrawal. Now What? To obtain advice on retirement planning and your options, please arrange a complimentary consultation with an LPL Financial Advisor at your nearest TruWest branch: contactfp@truwest.org • 855.690.3762 Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. TruWest Credit Union is not a registered broker/dealer nor affiliated with LPL. NOT NCUA INSURED NO CREDIT UNION GUARANTEE MAY LOSE VALUE
OTM_Winter2015_Draft_FINAL
To see the actual publication please follow the link above