Languages

Support on this site for Internet Explorer 7 and Internet Explorer 8 will end on April 26, 2017. You must update your browser prior to then to continue accessing ubt.com and UBTgo Online Banking. Learn More Here >>

Rollover Options

If you are leaving your old employer, bring your 401(k) with you.

When you start a new job there are many benefit decisions to be made but don’t forget about one of the most important, your old 401(k). You have several options available to you. You can take a cash distribution from your account. This is the least desirable option. Not only will you pay ordinary income tax on these funds but you will also be subject to a 10% early withdrawal penalty if you are under the age of 59 ½. In addition, this reduces your retirement nest egg.

Your former employer may allow you to leave your money in their 401(k) plan. Leaving your money in the old plan will keep your tax-deferred status in tact but you will no longer be able to make contributions to your account. Plan Sponsors also may change 401(k) providers periodically and this may make it hard to track down your funds when you do retire.

If your new employer has a retirement plan, you may be able to rollover your retirement savings into that plan. This will allow your money to continue to grow on tax-deferred basis and keeps your accounts consolidated. You can choose to roll your retirement savings into an IRA. This gives you several benefits:

  • Continued Tax-deferred growth
  • Consolidation of Retirement savings
    You may have multiple retirement accounts from former employers. Consolidating these accounts makes it easier to manage your retirement assets.
  • Choice of Investment Options
    An IRA may provide you with a broader range of investment options that might not be available in your employers’ 401(k) plan.
  • Greater Control over your assets
    Employer plans may have rules restricting when you can change investments, make withdrawals and mandatory tax withholding. A Rollover IRA, you retain control and flexibility over how your dollars are invested and when you receive withdrawals. You may also make contributions to your IRA to continue saving for retirement until you are eligible for your new plan.

The retirement and rollover experts at Union Bank & Trust are here to help you choose the option that is right for you. Please contact Amy to get started, or use the links below to open your Traditional or Roth IRA account.

Docusign: Traditional IRA

Docusign: Roth IRA

Amy Carkoski, Assistant Vice President
Amy Carkoski
Investment Officer
B.S. from University of Nebraska
Industry experience since 2000
Certified IRA Services Professional
Phone: 402.323.1337
Email Amy

Investment products: Not FDIC Insured - No Bank Guarantee - May Lose Value.