401(k) Rollover Planning
At Nusenda Credit Union, helping you build a solid foundation for achieving your financial goals is our main priority, and that includes providing expert guidance on matters concerning your 401(k) rollover. We can help you get your retirement plan started early and show you your savings potential through options like Rollover IRAs**, which may have more attractive features than your former employer’s qualified plan.
What you decide to do with your 401(k) assets when changing jobs or retiring is one of the most important decisions you can make for your financial future, and our CFS* Investment Services Registered Representatives are here to help. Through our broker-dealer CUSO Financial Services, L.P. (CFS*), they can help you make an informed decision about your situation, your investment timeframe and your long-term financial goals. Whatever you decide to do, we’ll ensure that you have all the information you need to work to make the best retirement plan for you.
To learn more about how to improve your retirement savings strategy with your 401(k) rollover, call 505-872-5434 (800-347-2838 outside the Albuquerque area).
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer member FINRA/SIPC and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk, including possible loss of principal. Investment Representatives are registered through CFS. Nusenda Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
**IMPORTANT INFORMATION WHEN CONSIDERING AN IRA ROLLOVER: If I terminate my employment with my employer who sponsors a retirement plan, I understand that my options with respect to plan assets include one or more of the following: (i) remain invested under the plan (generally, if a balance is $5,000 or greater), (ii) transfer plan assets to a defined contribution plan of my new employer (if applicable), (iii) transfer plan assets to an IRA with a financial institution, or (iv) withdraw assets directly, which would be subject to federal and applicable state and local taxes and possibly be subject to the IRS penalty of 10%, if under age 59.5. If I transfer assets out of the Plan and into an IRA I understand that: (i) those assets will no longer be subject to the protections of ERISA, (ii) I alone will be making investment decisions about those assets and will not be able to rely on the plan sponsor or any other person with ERISA fiduciary responsibilities, (iii) depending on the investments and services selected for the IRA, I may pay more in transaction costs than when the assets are in the Plan, and (iv) if I am between the age of 55 and 59.5, I would lose the ability to potentially take penalty-free withdrawals from the plan, (v) if I continue working past age 70.5 and transferred my plan assets to my new employer’s plan, I would not be subject to required minimum distribution, and (iv) if I hold appreciated company stock, I understand any potential tax benefits that may have been available to me (e.g. net unrealized appreciation). If I transfer Plan assets into an IRA with you, and arrange for your investment representative to provide services with respect to the IRA, I understand that the investment representative: (i) will provide services that are different from the services that I received as a participant in the Plan, (ii) may receive more compensation for the services related to my IRA account, and (iii) will receive more or less compensation depending on which services or investments I select for the IRA. I acknowledge that this may present a conflict of interest because the investment representative could have an incentive to recommend one service or investment over another. Before I elect to open an IRA account and engage your investment representative, I agree to review all account agreements and disclosure documents related to my IRA and the services to be provided under any new relationship with you and your investment representative and to consult with a qualified tax advisor as I deem appropriate.
Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA, an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.