| Potential benefits |
Leave assets in former employer's
plan |
Roll over
to a new employer's
401(k) plan |
Cash out |
Roll over
to a
Rollover IRA |
Possible exclusive investments |
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Withdrawals before age 59½ may not be subject to a 10% additional federal tax if you have separated from your former employer on or after age 55 (ordinary income tax will apply) |
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Easier to monitor consolidated investments |
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Possible discounted pricing |
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Ability to borrow |
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Generally, more investment choices |
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Merrill Edge® help selecting
investments (with a Merrill Edge
Advisory Center account) |
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Greater access to funds |
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* |
** |
Tax-free withdrawals (with qualified distributions from a Rollover Roth IRA) |
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*Cash out: Withdrawals are subject to ordinary income tax. In addition, a 10%
additional federal tax may apply to withdrawals taken prior to
age 59½.
**Rollover IRA: While an IRA is designed to help you save for retirement, you
can access your funds at any time. Any funds withdrawn, however,
generally will be subject to ordinary income taxes and, potentially, 10%
additional federal tax for withdrawals taken prior to age 59½. Withdrawals
from a 401(k) or other qualified plan are typically subject to certain
restrictions that withdrawals from an IRA are not subject to. Please contact
your plan administrator for more information about your plan's distribution
options.
The options presented here are those typically available with an employer-sponsored qualified plan. Check with your retirement plan administrator to find out about your plan's actual investment and distribution options.
Before initiating a rollover, investors should consider any potential tax consequences, as well as fees, expenses or sales charges associated with selling an investment and buying a new one.
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