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Know Your Distribution Options

Understand the options for your retirement savings

If you're changing jobs or retiring, what you do with the money in your employer-sponsored retirement plans can have a significant impact on your future savings. You may want to consider some of the options below for managing your retirement savings - this shouldn't be considered a complete list of options.

Decide which option is right for you

Leave your retirement savings in your former employer's retirement plan

  • Your savings keep their tax-favored growth potential.
  • You can typically keep your current investments.
  • Your account is subject to the rules and investment options of your former employer’s plan.
  • You can’t make additional contributions.

Move your retirement savings into your new employer's retirement plan

  • Your savings keep their tax-favored growth potential.
  • Your account is subject to the rules and investment options of your new employer’s plan.
  • You can keep your retirement savings in a single account.
  • You need to see if your new employer’s plan allows this option.

Move your retirement savings into an Individual Retirement Account (IRA)

  • Your savings keep their tax-favored growth potential and allow for account consolidation.
  • You have access to a wider variety of investment options.
  • This option is available through many financial service providers, including Wells Fargo.
  • Consider fees and services when comparing IRA and employer plan options.*

Withdraw your money as cash

  • Your money becomes immediately available.
  • The withdrawal amount is considered current year income.
  • There is a 20% mandatory withholding for federal taxes and the potential for additional state withholdings.
  • You may lose retirement savings and future tax-favored potential growth.
  • The Internal Revenue Service may charge a 10% early withdrawal penalty if you’re under age 59 ½.

Before making this choice, use our retirement withdrawal costs calculator.