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5 Options for Your Account When You Retire

5 Options for Your Account When You Retire

Distribution Options

You have many distribution options available to you when you retire. Review this chart of your five distribution options and then contact your financial professional to discuss which one might be best for your situation.

 

Options

Benefits

Considerations

Roll over into a traditional IRA

 

Invested assets remain tax-deferred

Avoid current taxes and a 10% early withdrawal penalty (when applicable)

Not subject to former employer’s plan restrictions

Flexible — wide selection of investment options

Assets may be consolidated into one account

May be appropriate if you are younger than 59½ years of age and want to avoid immediate taxes and penalties (if applicable)

May set up systematic withdrawals or take partial withdrawals from the IRA as needed

Select a retirement income stream

Wide range of annuity income options

Flexibility to choose a payment method that best meets your needs

Income stream of specified payments

Interest rate is locked in at time of purchase

Once an annuity income option is selected, it cannot be changed

Anticipate future needs when selecting an annuity income option

Keep assets in former employer’s plan

Invested assets remain tax-deferred

Avoid current taxes

Same ID/password to access your account online or via telephone

Limited to former plan’s investment options

May not be permitted by your former employer’s plan

May limit distribution options

Costs may be higher inside the plan

Transfer assets to new employer’s plan

 

Invested assets remain tax-deferred

Avoid current taxes

May offer investment options that your former plan does not

Subject to new employer’s plan restrictions

Limited to the investment options offered by your new employer

May not be permitted by your new employer

May have a waiting period before you can participate

Lump sum cash distribution

Immediate account access, less any taxes, incurred penalties and loan payoffs

May invest in anything, although generally money will no longer be invested tax-deferred

If you need access to cash, consider a partial rollover to avoid paying taxes on the entire amount

Money withdrawn is subject to federal and state taxes

If you are under 59½ years of age, you may be assessed a 10% early withdrawal penalty

Plan assets must be rolled to another qualified plan within 60 days or retirement contributions are no longer tax deferred

Your former employer’s contract may assess withdrawal charges on cash distributions

 

Notes:

Any investment involves risk and there is no assurance that the investment objective of any investment option will be achieved. Before investing, understand that variable annuities are subject to market risk, including possible loss of principal.

Group annuity contracts are issued by American United Life Insurance Company® (AUL) and registered variable annuity products are distributed by OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC, One American Square, Indianapolis, IN 46282, 1-877-285-3863. McCready and Keene, Inc. and OneAmerica Retirement Services LLC provide administrative and recordkeeping services and are not brokers/dealers or an investment advisors. Neither AUL, OneAmerica Securities, McCready and Keene, OneAmerica Retirement Services nor their representatives provide tax, legal or investment advice.

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