Options

Advantages

Potential Disadvantages

Direct Rollover to a SLAVIC MANAGED IRA

Assets remain in investments tax-deferred.

Assets are actively managed by Slavic Investment Professionals

Ability to consolidate multiple retirement accounts from previous employers

Flexibility to convert to a Roth IRA (if eligible)

Option of moving assets to a future employer plan, if the plan allows

Penalty-free withdrawals prior to age 59½ are not permitted unless an exception applies (purchase of first home, disability, medical expenses)

No loans permitted

No self directed options

Electronic base, not paper statement option available

Minimum Investment Option of $10,000.00 required

IRA distribution fees may apply

Indirect Rollover to an IRA

Short-term use of the rollover money

Continued tax-deferred* growth once in a Rollover IRA

Mandatory federal income tax withholding of 20% and possible state tax withholding

20% withholding must be reported on current taxes to receive credit

Must replace 20% withholding (plus any state taxes withheld) with personal money to avoid taxes and penalties at time of rollover

Must complete rollover before 60 days from date of distribution

Must pay taxes and possible penalties on any amount not rolled over

Lose tax-deferred* growth on 20% federal and any state taxes paid out-of-pocket

Withdrawals made before age 59½ may be subject to penalty tax

Leave assets in your former employer's plan

Assets remain in investments tax deferred

Easiest course of action (stay with current investments and no new paperwork)

Account under trustee/former employer control

Roll over your assets to your new employer plan

Assets remain in investments tax deferred.

Loans may be permitted

No 20% withholding for federal income tax or state withholding

Consolidation: having all funds in one place

Limited access and control

May have limited investment choices

May not be eligible to join the plan until a year of service has been completed

Not all employers provide this option

Take a cash distribution

The distribution amount is immediately available to you

Immediate access to your money

No premature distribution penalty if you are 59½  or older when you terminate employment

The withdrawal depletes your retirement savings.

Mandatory 20% withholding for federal taxes if under age 59½

State and local taxes may apply

Distribution may be subject to 10% IRA penalty if under age 59½

Lose the opportunity to grow assets tax deferred

Might move into a higher tax bracket