M - F: 8:30am - 5pm ET
If you're leaving a job, retiring, or have money left in a former employer's 401(k) plan, you may want to consider rolling those retirement assets over to a PNC Investments Rollover IRA. This is one of four options you may have for these assets.
M - F: 8:30am - 5pm ET
Find a PNC Location near you and stop by to see us.
• A rollover IRA is one of four options you may have for old employer plan assets when leaving an employer; review all of your options before making a decision.
• A rollover allows you to transfer assets from your former employer’s plan into an IRA without taxes or penalties (may be subject to new fees and costs)
• Assets continue to accumulate on a tax-deferred basis
• Consolidating money from multiple employer plans into one account can increase administrative ease
Anyone who earns taxable compensation is eligible to make contributions to a Traditional IRA. Contributions to a Traditional IRA grow tax-deferred until the money is withdrawn.
If you’ve earned income below a certain threshold – $153,000 (filing single) or $228,000 (filing joint) for 2023 – a Roth IRA may be appropriate for you. Your contributions and any accumulated earnings can be withdrawn tax-free at retirement.
With a direct rollover, you don’t take possession of the money. Rather, you instruct your former employer to send your retirement plan assets directly to a qualifying employer plan or to an IRA (either Traditional or Roth). This can be a simple way of rolling over funds and keeping your retirement assets working toward your goals.
With an indirect rollover, you begin by requesting a lump-sum distribution from your plan administrator and then take responsibility for completing the transfer. With an indirect rollover, you will not get the full dollar amount – because the plan administrator is required to withhold 20% to ensure taxes on the income will be paid in the event that the rollover is not completed. To avoid being taxed on your (pre-tax) contributions and earnings, and to avoid the potential of an additional 10% withdrawal penalty (applicable if you’re younger than age 59½), you must deposit the funds into a qualifying employer plan or IRA within 60 days. If you want to defer taxes on the full amount distributed to you, you will have to add funds from another source equal to the 20% withheld. You’ll get that money back if you properly complete the rollover.
You can elect to take the money from your employer-sponsored plan and NOT roll it over to an IRA, but you will have to pay taxes on the amount withdrawn. If you’re younger than age 59½, distributions may also be subject to a 10% early withdrawal penalty.
Call 855-PNC-INVEST for help in deciding whether a Roth Conversion is appropriate for you.
A Roth Conversion allows you to take money in your Traditional IRA and move it into a Roth IRA. Generally, you’ll owe taxes on the amount of money you convert. However, qualified withdrawals from a Roth IRA can be made tax-free. This may result in significant savings in the long run. Consult your legal or tax adviser on this opportunity and your individual tax situation.
Find a PNC location near you and stop by to see us.
Learn how PNC Investments does business, including our qualifications, business practices, fee schedules, and options for how you can work with us by reviewing our Client Relationship Summary, Overview of Products and Services and more. View Details »
This material is meant to educate and not to provide legal, tax, accounting or investment advice. PNC Investments and its affiliates and vendors do not provide legal, tax or accounting advice.
Important Investor Information: Brokerage and insurance products are:
Not FDIC Insured • Not Bank Guaranteed • Not A Deposit
Not Insured By Any Federal Government Agency • May Lose Value
Securities products and brokerage services as well as managed account advisory services to US based clients are offered by PNC Investments LLC, a registered broker-dealer and a registered investment adviser and Member FINRA and SIPC. Managed account advisory services for non-US based clients are offered by PNC Managed Account Solutions, Inc., a registered investment adviser. Annuities and other insurance products are offered through PNC Insurance Services, LLC, a licensed insurance agency.
PNC Investments, PNC Insurance Services and PNC Managed Account Solutions do not provide legal, tax, or accounting advice.
View the PNC Investments Business Resiliency Planning Customer Disclosure.
View Important Information About Order Routing and Execution.
This document provides information on additional compensation that PNC Investments receives from certain mutual fund companies, 529 plan program managers and insurance companies.
This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized or unlawful to do so.
PNC Investments does not guarantee the performance of any investment. Investing results may vary. Investments may lose money. Diversification and asset allocation may not prevent a loss of investment.
PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.
Bank deposit products and services provided by PNC Bank, National Association. Member FDIC.
Read a summary of privacy rights for California residents which outlines the types of information we collect, and how and why we use that information.