Individual Retirement Accounts
- The ability to contribute up to $5,500 annually, some of which may be deductible from your taxes
- Tax-deferred earnings on your contributions help your savings potentially grow more quickly since you don't pay taxes until you withdraw the funds
- Withdraw funds without IRS penalty prior to age 59 ½ for certain qualifying expenses (income taxes will apply)
- The ability to contribute up to an additional $1,000 "catch-up" contribution, beginning in the year you reach age 50
- The ability to contribute up to $5,500
- Potential tax-free earnings as long as withdrawals begin after you are age 59½ and have had the account for at least five years
- Tax-free earnings, to the maximum amount of $10,000, for the purchase of a first-time home, after you have had the account for at least five years
- Generally, prior to age 59 1/2, withdrawal of contributions are IRS penalty-free; income taxes and penalties may apply to earnings
- The ability to contribute up to an additional $1,000 "catch-up" contribution per year, beginning in the year you reach age 50
Potential benefits of a rollover
- Retirement savings continue growing tax-deferred
- Greater flexibility in choosing your investments
- The ability to move or transfer your individual retirement account from one IRA provider to another and the ability to consolidate multiple employer plans into one resource
- The ability to withdraw money from your IRA more easily than from an employer plan (income taxes and potential penalties still apply)
- A rollover is one distribution option. You should consider all of your available options and the applicable fees and features of each option before moving your retirement assets.
If you've changed jobs or are retiring, rolling over your retirement assets to an IRA can be an excellent solution. It is a non-taxable event when done properly - and gives you access to a wide range of investments and the convenience of having consolidated your savings in a single location. Flexible beneficiary designations may allow for the continued tax-deferred investing of inherited IRA assets. We can handle all details for you, including contacting your former plan administrator, opening your new rollover IRA and completing the paperwork.
In addition to rolling over your 401(k) to an IRA, there are other options. Here is a brief look at all your options. For additional information and what is suitable for your particular situation, please consult us.
Leave money in your former employer's plan, if permitted
Pro: May like the investments offered in the plan and may not have a fee for leaving it in the plan. Not a taxable event.
Roll over the assets to your new employer's plan, if one is available and it is permitted.
Pro: Keeping it all together and larger sum of money working for you, not a taxable event.
Con: Not all employer plans accept rollovers.
Rollover to an IRA
Pro: Likely more investment options, not a taxable event, consolidating accounts and locations.
Con: usually fee involved, potential termination fees.
Cash out the account
Con: A taxable event, loss of investing potential. Costly for young individuals under 59 ½; there is a penalty of 10% in addition to income taxes.
Schedule your Complimentary Consultation Today
Call the PCB Investment Center Toll-Free: 866-280-9472
We’ll talk to you about your current situation, your personal needs and your goals. Then, we’ll work together to develop a customized investment plan that addresses all three.
“As an independent financial advisor, I can offer you a personalized financial plan, instead of a generic investment program. Through Raymond James, one of the largest and most respected independent financial services firms in the country, I have access to a multitude of investment and planning resources which can be leveraged to create your own personalized financial plan based on your unique situation, preferences and goals.”
-Verna Brand, Financial Advisor, CRPC®, RJFS, WMS, Investment Management Consultant
Securities offered through Raymond James Financial Services, Inc., Member / and are not insured by bank insurance, the FDIC, or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. The PCB Investment Center and Phelps County Bank are not registered broker dealers and are independent of Raymond James Financial Services.
Raymond James financial advisors may only conduct business with residents of the state and/or jurisdictions for which they are properly registered.Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on the site. Contact your local Raymond James office for information and availability.