If you're leaving a job, retiring, or have money left in a former employer's retirement plan, you may want to consider rolling over your plan account to an IRA.
An IRA is one of several options you have for managing your retirement plan. Review alternative options.
Rollover IRA Features & Benefits
- IRAs can offer you more flexibility and a broad array of investment options
- If you are eligible, a properly executed traditional rollover from your former employer's eligible retirement plan is not subject to taxes or penalties
- You may have more flexibility in selecting distribution options and designating beneficiaries for your IRA than is offered under your employer plan
- IRA assets can continue to be invested on a tax-favored basis
- You might also be able to increase administrative ease and potentially reduce fees by consolidating multiple existing IRAs into a single IRA
- Anyone with an IRA is eligible to take a distribution from a former employer sponsored plan
Minimum to Open
Account Fees & Minimums
Vary based on the way you choose to manage your IRA
Types of Rollover IRAs
You can roll over funds from a former employer's sponsored plan or existing IRAs into either a Traditional or Roth IRA.
|With a Traditional IRA, you can benefit from possible tax-deductible contributions and earnings that remain invested tax deferred.
|If you meet certain income qualifications, you can use a Roth IRA to invest toward your retirement with potential tax-free withdrawals in retirement.
|Direct Rollover||Your retirement funds are sent directly from your company qualified retirement plan to a PNC Investments Traditional or Roth IRA, and are not subject to current income tax. With a direct rollover, you don't take possession of the money. This may be the easiest way for your retirement assets to keep working toward your retirement goal.|
|Indirect Rollover||Your funds are sent directly to you, less 20% that is withheld by the company for taxes. Once you receive the funds from your former employer plan, you have 60 days to deposit them (plus an amount equal to the 20% withheld) into a Traditional or Roth IRA. Any amount you do not deposit to an IRA in the specified time period, may be treated as a taxable distribution. In addition, depending on your age (if younger than 59½), these distributions may be subject to a 10% early withdrawal penalty. In an indirect rollover, you briefly take possession of the money.|
|Distribution||You can decide to take the money from your employer-sponsored plan and not roll it into an IRA, but you will have to pay taxes on the amount withdrawn. Depending on your age (if younger than 59½), distributions may be subject to 10% additional early withdrawal penalty. In a distribution, you take full possession of the money and the potential tax consequences may be the highest.|
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PNC Investments does not provide legal, tax or accounting advice. If you have IRAs or 401(k) accounts from former employers, you may have several options to consider, including keeping the money where it is, rolling it into a new employer's plan, rolling or transferring it into an IRA or cashing it out. When making the decision to roll over a 401(k) account to an IRA, please consult your tax or legal advisor regarding any tax or other implications, and consider that investment choices and retirement payment options between the accounts will differ, and other costs and expenses may differ.
This material is meant to educate and not to provide legal, tax, accounting or investment advice. PNC and its vendors do not provide legal, tax or accounting advice. You should seek the advice of an investment professional to tailor a plan to your particular needs.
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