Intro to Rollover IRAs
The odds are you’ll change jobs during your working years.
In fact, the average American worker changes jobs 11 times before retiring.1 If every one of those jobs offered a retirement plan, like a 401(k), that could mean 11 different retirement plans. What should you do with that money? Basically, you have four options with former employer 401(k) money.2 You can:
Take the money
You'll probably pay a penalty and taxes. The distribution is generally subject to ordinary income tax and a potential IRS early distribution penalty.
Leave it where it is
If you're happy with the plan and the investment options, this is an easy choice. However, only certain plans allow this.
Roll it to your new employer's retirement plan
It’ll be easier to keep track of your retirement money that way. Remember though - if you decide to do this, you may not have the opportunity to roll the money out until you change jobs again. Also, only certain plans allow this.
Roll it to an IRA
If you have more than one retirement plan with previous employers, you can probably roll them all to one IRA. This option may make it easier for you to keep track of your retirement money.
Before you decide which option is right for your situation, you need to weigh the pros and cons of each. The best way to do that is to talk to a financial professional.
How it works
There are two events that might make you consider a rollover from an employer retirement plan: changing jobs and retirement.
With a direct rollover, you can open an IRA at a financial institution – like COUNTRY Financial®, tell your former employer you want to roll the money over, and then invest the money. Or if you already have an IRA, you may be able to roll the money into your current retirement plan.
With an indirect rollover, the assets from your former employer retirement plan would go to you (less a percentage they’re required to hold back for federal taxes), and you'd have 60 days to roll over the amount to an eligible retirement plan.
Your COUNTRY Financial representative is available to help you complete the process.
What's in it for you?
An IRA rollover can help you manage your retirement accounts by allowing you to move money from one tax-favored retirement plan into another.
It's one way to avoid possible penalties for early withdrawal.
The earnings on your retirement dollars will continue to have tax-deferred growth potential.
You’ll keep control.
You may have more flexibility in the investments you select.
That last point – the one about investments – is a big one. Rolling your money to a COUNTRY Financial IRA means you’ll enjoy a multitude of funding options.
Are you investment savvy, have zero interest in the financial markets, or somewhere in between? Wherever you are on the investment scale, COUNTRY Financial probably has a funding option to suit you.
Select your own investments
Including funds from well-known mutual fund families. If you’re the type who wants to pick and choose your own investments, this could be a good choice for you.
Fund your IRA with an annuity
For lifetime income.
Choose professional investment management
Our investment pros invest the money for you so you don’t have to worry about it.
If, after a careful review of your situation, you think a Rollover IRA is right for you, contact your local COUNTRY Financial representative to get the process started. It’s an easy way to consolidate your retirement money at one location.
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Investment management, retirement, trust and planning services provided by COUNTRY Trust Bank®. Please see our Terms & Conditions for more information about COUNTRY Trust Bank and its affiliates.
Annuities issued by COUNTRY Investors Life Assurance Company®, Bloomington, IL. Funding your IRA with an annuity does not offer additional tax benefits.
COUNTRY Financial and our representatives cannot give legal or tax advice. Please consult tax and legal counsel of your choice regarding your personal circumstances.
A mutual fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus or summary prospectus contains this and other important information about the investment company and may be obtained by calling 1-866-551-0060. Read it carefully before investing.
1“Smart 401(k) Investing – Moving Your 401(k),” FINRA. [http://www.finra.org/Investors/SmartInvesting/Retirement/Smart401kInvesting/Introduction/]
2Be sure to understand the benefits and limitations of all available options for assets in a former employer retirement plan before making a decision. You should consider factors such as differences in services provided, available investment options, fees and investment related expenses, when penalty free withdrawals are available, when required minimum distributions may apply, protection of assets from creditors and legal judgments, availability of loans and other concerns specific to your situation. You should consult with the plan adminstrator and a professional tax advisor before initiatinig a distribution.