401(K): Should I stay or should I roll?

If you are separating from an employer, either voluntarily or involuntarily, you may now be seriously considering what to do with the money in your employer-sponsored retirement plan, if the plan allows.

If your balance is large enough, you may have the option of leaving it where it is. In some cases, this makes sense. For instance:

- If your former employer’s plan is well managed, offers low costs, and includes investment options that are not readily available to outside investors.

- If there is a possibility that you may return to your former employer. This should particularly be considered for government employees participating in 457 plans, which typically provide penalty-free retirement income much earlier than an IRA or 401(k).

- If you will reach age 55 or older at the time of termination, maintaining a 401(k) plan gives you the option to begin taking distributions prior to age 59 ½ (beginning at age 55) without incurring an IRS penalty. Rolling funds to an IRA negates that option.

- If you have an investment in your former employer’s stock, once you have made a partial or full rollover to an IRA, the Net rnrealized Appreciation option is no longer available.

- If you are facing bankruptcy, funds in a 401(k) account are generally not available to creditors, whereas in some states, IRA assets may be available to creditors in the event of bankruptcy.

If your new employer offers a retirement plan, you can always move your money there. However, you’ll be limiting yourself to the investment options that the new plan has to offer. By rolling your money into an IRA instead, however, you’ll not only likely have greater control over and access to an extensive array of investment options, your assets will maintain their tax-advantaged status as well.

And with a rollover IRA, you can combine money from both employer-sponsored plans and existing IRAs into a single IRA account.

Consolidating your assets can help you simplify your finances, cut down on paperwork, manage your beneficiary designations efficiently, and keep track of investment performance.

Not only will your assets be easier to manage, you’ll be able to keep working toward your retirement goals by making additional contributions to your new IRA – up to $5,000 in 2012, $6,000 for IRA holders age 50 or older.

For more information on rolling your retirement assets into an IRA, contact your financial professional today.

Article submitted by: Kathleen M. Zelenka, Stifel, Nicolaus & Company, Incorporated (email: zelenkak@stifel.com)

Kathleen Zelenka is a financial advisor with The Gormley/Furlong Group at Stifel, Nicolaus & Company, Incorporated, member SIPC and New York Stock Exchange, and can be reached by calling the firm’s Yardley office at 215-504-1665 or toll-free at (800) 223-7635.

Upcoming Chamber Events

Business Card Exchange – A marketing visibility opportunity!

Wednesday, Sept. 19 from 4:30 – 6:30 p.m. t Sam’s Club • 1717 E. Lincoln Highway, Langhorne. Cost: Free with advanced registration Registration: E-mail chamber@lbccc.org or Fax 215-943-7404 or register online at www.lbccc.org

If making a reservation by e-mail, don’t forget to submit your name & company.

Marketing Your Products & Services to Bucks County, PennDOT, & Federal Government

Thursday, Sept. 27 from 8:15 to 12:30 p.m. at the LBCCC Offices in the McCafferty Auto droup Boardroom, 409 Hood Boulevard, Fairless Hills.

Networking & Registration from 8:158:30 a.m.

Program begins at 8:30 a.m. and concludes at 12:30 p.m. Sponsor: Fulton Bank Develop an action plan for government marketing to help take your business sales to the next level. Topics include: • doods and services purchased by government agencies and departments

• Navigating and understanding government procurement regulations

• Tips on finding government business opportunities

• Exploration of the procurement cycle process from bid to contract to payment Speakers: • Maureen Wilson McIlvaine, CPPO, CPPB, Director of the Bucks County Purchasing Department

• Kyron Robinson, Director, DBE Supportive Services, Cheyney rniversity of PA

• deorge Murray, Business Development Specialist, rS Small Business Administration

• Faye Fitz, dovernment Marketing Specialist, Temple rniversity Small Business Development Center Cost: Free with advanced registration Registration: E-mail chamber@lbccc. org or Fax 215-943-7404. Web site www. lbccc.org.

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