Options For Your Retirement Plan Balance When You Retire
Key Takeaway
As you near retirement, you may have questions regarding the options available for your employer-sponsored plan savings. For starters, consider the following options. Seek tax advice to further understand the impact of your choices. You should also review your plan materials for details on your options for staying in the plan.
| Details | IRA Rollover | Lump Sum Withdrawal | Current Plan |
|---|---|---|---|
| Investment Choices | The variety of investment options depends on the provider. Providers include mutual fund companies, banks, credit unions, and financial advisors. | Funds are no longer invested. | Continued access to current and future plan lineup. |
| Fee and Expenses | Fees vary widely depending on the provider and investments selected. | One time distribution fee. | Mutual funds in your plan may carry lower expenses than the same or similar funds bought outside the plan. |
| Tax Implications | No taxes or penalties. | You must pay taxes on the withdrawal amount, plus possible penalty if under age 59½. | No taxes or penalties. |
| Other Considerations | Ask questions about withdrawal options and potential maintenance fees. | You will continue to receive quarterly statements, use of the Client Service Center, and website. |
Alerus Financial, N.A. offers IRA rollover choices with flexible distribution options, internet and telephone access, quarterly statements, and a selection of diversified investment portfolios.