Understand your distribution options

When it comes to deciding how to handle the assets from your previous employer’s retirement plan, you have much to consider.  Your plan will state the distribution options available to you.  However, generally you can: 

  • keep your investments in your former employer's plan;
  • roll your investments into a plan with a new employer;
  • roll your investments into an IRA; or
  • take your distribution in cash.

There are advantages, disadvantages and potential tax consequences to consider for each option. We can help you understand your options and present strategies that help you make well informed decisions that will serve your financial needs; both today and in the years to come. 

Investing in your future

Keeping your retirement assets invested in a retirement plan or IRA is important for your future goals. In all likelihood, you will need to use your savings and investments to create a regular “paycheck” after you stop working.  In fact, for many people, it will be the primary source of income during retirement.  Therefore, the choices you make about your employer-sponsored retirement plan distribution can play a critical role in determining the course of your financial future. We believe we have the training and experience to help you make the smart choice for your future.

Why RBC? 

  • Premier service from your own dedicated financial advisor. We work with you to understand your unique needs and goals.
  • Personalized investment solutions from a wide range of investment options. You can choose from mutual funds, stocks, bonds, FDIC-insured CDs, money market funds, and managed accounts.
  • Professional guidance to help you choose your investments. Our recommendations and retirement planning tools can help you make smart choices regarding your future retirement goals.
  • Retirement planning for you and your family.  We will help you plan your future by looking at your total financial health and providing you with a customized plan for creating the future of your dreams.

Consider the tax consequences

(For illustration)

Distribution $50,000
Less federal tax (12,500)
Less state tax (2,500)
Less penalty tax (5,000)
Remaining funds $30,000

$30,000 could be all you see of your original $50,000* distribution

Additional resources

If any of these pieces inspires a question or investment idea, please contact us any time. We’d love to hear from you.