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Would you like to have control of your retirement savings? One of the biggest complaints we hear from employees is the lack of control they have over their 401(k) plans. The employer places limitations as to where you can invest your retirement savings and as to your investment options. Following in second place is the lack of service
or cooperation they receive from their previous employer and/or
benefits department. The administration cost and related expenses of 401(k)
plans happen to be costly. Usually fees are based on the number of participants
(both currently employed and terminated) on record and assets under management.
If you think about it for a moment, it can become quite expensive for
a corporation that may have several terminated employees still invested
within the plan. These costs or related expenses are usually passed on
to the employees (both currently employed and terminated). Please refer
to Is Your 401(k) Costing You More Than it's Worth? by
clicking on link. |
| If you are under age 59 ½, a 10% premature penalty
may be assessed on all distributions you receive. Waiver of the 10% premature
penalty may apply in some specific circumstances. Employees should consult
their tax advisor pertaining to their particular situation.
By taking substantially equal periodic payments, you avoid incurring the 10% premature distribution penalty. The substantially equal distribution schedule selected must continue for at least 5-years or until you reach age 59 ½, whichever is longer, or you will be subject to a 10% premature distribution penalty on all payouts already received. Further details with respect to substantially equal periodic payment formulas are provided in IRS Notice 89-25. All distributions from your retirement account are taxable in the year received. Please note, that at age 70 ½, you must begin taking minimum distributions from your retirement plan. Distributions for any of the above reasons involve specific tax regulations and options. Please consult your tax advisor before requesting the distribution. This information does not constitute tax advice. FSC Securities Corporation and/or its representatives do not provide tax advice. Please consult your tax advisor pertaining to your particular situation. Information and opinions expressed are strictly those
of the author and may not be those of FSC Securities Corporation.
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