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INVESTMENT OPPORTUNITIES

401 (k) ROLLOVERS

A new job opportunity means new investment options.

Moving your eligible retirement funds left with a previous employer to your own individual Rollover IRA account. You can do a rollover if you are leaving, changing or retiring from a job. In essence, you can take your retirement assets with you when leave a job. Even better, your money continues to grow on a tax-deferred basis.

Some of the advantages of doing a rollover when you leave your employer are:

Your previous employer may get bought out or merge with another company. The rules governing your retirement plan are largely decided by your employer. These rules may very well change when a company is merged or sold. By rolling your funds over now, you won’t have to worry about losing control of your funds.

Build a more diversified portfolio. With your own IRA rollover account, you get to select the investment company and the investment choices you want.

Your previous employer’s pension plan may limit or not even allow participants to choose their investments. If the investment choices for your 401(k) plans or pension plan perform poorly, you will have less money for your retirement. By rolling over your funds you will have more control on when, where and how your money is invested.

Your 401(k) plan may have high expenses. When the funds are left with the plan sponsor, they may not be invested as you desire and there is an additional layer of administration to go through for the former plan participant. Your plan fees may be higher than your Rollover IRA fees. By rolling over your retirement funds, you stay in control of these costs by choosing who administers and manages your funds.

Avoid losing track of your investments or your employer losing track of you. Over the course of your career you may change jobs several times. You may move several times and your employer may also move to a new location. And, if that employer loses track of your address you may never see that money again.

When you rollover your funds after you leave your employer, especially when you consolidate your funds into one rollover account, you reduce the risk of misplacing or losing track of your money.

Handle mandatory distributions wisely. If you have less than $5,000, the plan can decide to send you a lump sum distribution. To avoid paying taxes and penalties on any premature distributions, you can do a direct rollover of those funds and keep your retirement funds working for you.

Control the access to your funds. Some plans do not allow a participant to withdraw only a portion of their funds. Also, loans from the plan may no longer be available to you after you leave your employer.

A rollover IRA gives you the flexibility to take out, if needed, a small part or all of your money. You may be subject to taxes and penalties but only on the amount you pull out. You may even take money out without penalty for qualified distributions such as education expenses, first-time homebuyer expenses, medical expenses, death, and disability.

Reduce the tax burden on your beneficiaries. Some beneficiaries may not need these funds right away and would rather delay receiving a payout in order to avoid the income taxes and to take advantage of the continued tax-free buildup inside the plan.

Too much company stock may be risky. Some companies have large portions of their employees’ profit sharing and 401(k) funds in their company stock. By taking your pension funds with you, you have more control on how your money is invested and your level of diversification.

Your CFS* Financial Advisor at CommunityAmerica Credit Union, registered through our broker dealer CUSO Financial Services, L.P. (CFS), is here to help answer your questions, and make sure you’re aware of the options available to you.

The most important step is to start planning today by contacting a CFS* Financial Advisor. Our CFS* Financial Advisors are dedicated career professionals carefully selected and trained to serve credit union members.

Remember, we want you to have confidence in your CFS* Financial Advisor to act in your best interest –– which means you can expect our advice to be objective, fair and honest.

We invite you to call your CommunityAmerica Financial Advisor today, so we can begin working with you to help develop the right retirement plan for you.

* Investments and investment advisory services offered through CUSO Financial Services, L.P. (CFS), an independent broker-dealer and SEC Registered Investment Advisor are Not NCUA/NCUSIF insured, are Not credit union guaranteed and May lose value. CommunityAmerica Credit Union is affiliated with CFS. Financial Advisors are employees of CommunityAmerica Credit Union and registered through CFS. (Member FINRA/SIPC)