THE TAX MAN HAS HIS EYE ON YOUR BENEFITS.
Say “Goodbye” to the Job.
And “Hello” to the Tax Man.
When you change jobs or begin a new career, you face some important decisions beyond just how you’ll spend your time. You must also decide how you’ll invest your money.
Since you no longer participate in your former employer’s retirement plan, the plan must now pay out your benefits. How the money is distributed is up to you. But make the wrong decision, and it can literally cost you… now and for the rest of your life.
There’s not much time.
As long as you were employed, your funds were growing in your company’s retirement plan, sheltered from income taxes each year. But now that you’re leaving and the plan is making a lump sum distribution, your benefits are subject to immediate taxation. Take the cash, and you’ll also take an immediate 20% hit – government withholding tax on the entire lump sum. But if you choose to roll your retirement benefits over into a rollover IRA, you can continue to defer taxes on the funds you’ve built up. What’s more, depending on the investment vehicle(s) you choose for your IRA, you can also enjoy substantial growth of your funds, also tax-deferred.
The government requires you to make your arrangements before the plan makes its payout.
That’s why you need to visit with the people at TCK Trust & Financial Advisors now.
Here, you’ll find friendly, helpful professionals who understand the tax and investment implications of a lump sum distribution. We’ll take the time to work with you personally, face-to-face; to weigh the tax consequences, to explore the various investment alternatives, and to help you formulate a strategy that makes sense for you.
The future is our specialty.
A lump sum distribution may seem like an overwhelming, life-altering matter. While it certainly can be life-altering, it does not have to be overwhelming. In fact, it’s the kind of issue we deal with every day at TCK Trust & Financial Advisors.
With a full array of tax-advantaged investments at our disposal, we can offer you ways to put your retirement funds back to work, to continue providing the security, growth potential and tax benefits you want, both today and down the road.
Money doesn’t necessarily make life easier.
Planning does.
