- Introduction
- Lump-Sum Distribution
- Annuity Distribution
- Rollover to a Traditional IRA
- The Roth IRA - How Does It Fit In?
- Rollover to another Retirement Plan
- Mandatory Withdrawals
Your company may allow you to receive your 401(k) account balance as an annuity. Another option is to compare your company's annuity offer to a single premium immediate annuity available through an insurance company. The single premium immediate annuity must qualify as an individual retirement annuity. As long as you do a direct rollover, your 401(k) account retains its tax-deferred status.
IMPORTANT NOTE: The annuity contract must meet certain requirements to qualify as an individual retirement annuity. Check with the insurance company or your investment representative to make sure the annuity contract you purchase qualifies for a direct rollover.
Assuming all of your 401(k) contributions were made with pre-tax dollars, each payment from your company annuity, is taxable as ordinary income when received. If you made any after-tax contributions, a portion of each payment is received tax-free.*
*federally tax-free, may be subject to state and local taxes
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
