401K and Pension Rollovers
When credit union members leave their employer or retire, they can take their retirement plan money with them and transfer the funds into another IRA–called a rollover. Both defined-benefit and defined-contribution plans allow for an eligible rollover distribution.
Employees who leave an employer sponsored retirement plan may choose to do one (or a combination) of the following:
- Leave funds in the employer plan
- Distribute some, or all assets to themselves (pay taxes and potential tax penalties for early withdrawal)
- Rollover the funds to another qualified plan
- Rollover to a personal IRA
- Rollover to a personal ROTH IRA
- Rollover to their new employer’s plan (if the current plan allows for such transactions)
If you’re not sure which option is best for you and your family, schedule a personalized, private meeting with an advisor today.