Managing and Reallocating Your Existing 401(k) Plan

Many individuals visiting the 401(k) Hotline are seeking assistance and guidance relating to their existing 401(k) Plan. For those individuals not retiring or terminating employment, help is also available. An analysis of your existing 401(k) Plan can uncover certain issues that you may otherwise not be aware of such as being over-weighted/under-weighted in a particular sector or category, overlapping, standard deviation, and much more. By periodically reviewing and/or rebalancing your 401(k) Plan allocation, you may potentially increase your chances of reaching your retirement goals.* Contact Us for more information and to discuss your individual situation.



 

* This information does not constitute tax and/or legal advice. FSC Securities Corporation and/or its representatives do not provide tax and/or legal advice. Please consult your tax advisor and/or attorney pertaining to your particular situation.

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.