Are you a former employee of Ascension Hospital?
The merger of Ascension with St. John Hospital has created an opportunity to take control of your retirement dollars that you would not have had if that merger had not taken place. Don’t waste this unique opportunity to talk to a financial professional about your investment options.
You have options * Don't miss this opportunity
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You have options * Don't miss this opportunity *
Generally, when you have assets in a company retirement account, you need a plan triggering event to rollover your assets into an IRA that you can control. These events include retirement and separation of service. The merger between Ascension and Henry Ford has provided a third trigging event that you can take advantage of without retiring or leaving your job.
A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.
Leave the money in the former employer’s plan, if permitted.
Some 403(b) plans allow the participant to leave their funds in the plan provided the account balance exceeds a certain dollar amount (for example $5,000). Leaving the funds in a former employee’s 403(b) plan will eliminate the need for you to roll your assets over into an IRA in your name and could save you some expenses, but your investment choices will be limited to the funds provided by the plan.
Cash out the account value and pay any taxes.
If you choose to cash out your 403(b) account and that money is pre-tax, you will need to pay Federal and State taxes on that distribution. If you are under age 59 ½ you will pay an additional 10% on top of the Federal taxes.
Roll the assets over into the new employer’s plan, if that plan permits rollovers.
If you have a new job that provides a 403(b) or 401(k) plan, you might be able to roll the funds from your old 403(b) into the new plan at no cost to you, but you will be limited to the funds that are available in the new retirement plan.
Rollover the funds into an IRA that you control.
Finally, you have an opportunity to roll the assets in your TransAmerica 403(b) into an IRA and preserve the tax-deferred status of your investment while accessing a much broader selection of investment options diversifying your household portfolio.
Corporate retirement plans are fabulous vehicles for saving for retirement but have limited investment choices. Rolling your 403(b) assets over into a self-directed IRA maintains the tax-deferred status and provides unlimited investment options.
Some investments available in an IRA that are not available in a 403(b):
Individual Stocks * Individual Bonds * Alternative Investments * Gold / Silver * Private Equity
Give us a call to discuss which option is right for you.