Envisioning Your Retirement_Flipbook_2023

Rollovers If you leave your employer, you can generally keep your vested assets in your former employer’s plan as long as your account meets minimum balance requirements (typically $5,000; $7,000 in 2024). You may also have an opportunity to move the assets to a new employer’s plan, roll them over to a traditional IRA, convert them to a Roth IRA, or withdraw them.* If you choose a traditional IRA rollover, be sure it is executed correctly to preserve the tax-deferred status of the funds. To avoid current taxes, penalties, and withholding, you can generally arrange a direct rollover (also called a trustee-to-trustee transfer) by contacting the administrators of your old employer-sponsored plan and your IRA. You are limited to one indirect IRA-to-IRA rollover in a 12-month period, regardless of how many IRAs you have. The once-per-year rule does not apply to rollovers/transfers from an employer-sponsored plan to an IRA, Roth IRA conversions, or trustee-to-trustee transfers between traditional IRAs. *Distributions taken prior to age 59½ may be subject to a 10% federal income tax penalty, with certain IRS exceptions.