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Changing Jobs

 What to take | How to take it

“Not all rollover dollars roll the same.”

Most of what you had in your former employer’s plan can roll smoothly right into a new employer’s plan. Your contributions and any earnings can glide through, no problem. Any employer match in a former account transfers, as well, as long as you vested (worked long enough to own it). If you deposited after-tax money in your former plan, you’ll need to find another home for it.



 IN DETOUR
Your Contributions Any "after-tax" contributions
Any employer match
 
Any earnings on contribution or match
 


One more point. Be sure to transfer money plan-to-plan. If you receive money in your name, you risk paying taxes and penalties big time.

Want to know more? Click to read about rolling money from one employer-sponsored plan to another. Rollover IRAs and Rollover Annuities may be an option, too. Want to know more?


“Already have funds in hand? Don’t get zapped.”

If your former employer automatically cashed you out, you’ll notice 20% withheld for taxes. To avoid an early-distribution penalty and recoup on taxes:

  1. Reinvest in a tax-deferred plan within 60 days.
  2. Make up the 20% withheld out of your own pocket and include that in your invested amount.
  3. At income tax time, apply for a credit for the 20% your former employer withheld.
Employer-sponsored plan
Rollover IRA
Rollover Annuity


© 2008 ING North America Insurance Corporation. All rights reserved.
Advisory services provided through ING Financial Advisers, LLC (member SIPC).
This information is not intended to be tax or legal advice. ING does not offer tax or legal advice. Consult your own legal or tax advisor regarding your specific situation.
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