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Name of the speaker Registered Representative Date To Move, Or Not to Move? C09-0403-005 (05/09)FINRA Filing # _______________________ Retirement Rollover.

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Presentation on theme: "Name of the speaker Registered Representative Date To Move, Or Not to Move? C09-0403-005 (05/09)FINRA Filing # _______________________ Retirement Rollover."— Presentation transcript:

1 Name of the speaker Registered Representative Date To Move, Or Not to Move? C (05/09)FINRA Filing # _______________________ Retirement Rollover Options:

2 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments2 Important Information Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Variable annuities issued by ReliaStar Life Insurance Company are distributed by ING Financial Advisers, LLC. Variable annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York are distributed by Directed Service, LLC. Only ING Life Insurance Annuity Company and ReliaStar Life Insurance Company of New York are admitted and issue products in the state of New York. All companies are members of the ING Family of companies. © 2009 ING North America Insurance Corporation.

3 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments3 Important Information Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and are distributed by Directed Services, LLC. All companies are members of the ING Family of companies. © 2009 ING North America Insurance Corporation.

4 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments4 Important Information Securities and [financial planning] offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT, © 2009 ING North America Insurance Corporation.

5 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments5 Important Information Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. © 2009 ING North America Insurance Corporation.

6 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments6 Important Information Framewor(k) and (k)Choice Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. Mutual funds offered through ING Financial Advisers, LLC (member SIPC). © 2009 ING North America Insurance Corporation.

7 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments7 Important Information (continued) Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective. For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are grandfathered and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings). You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

8 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments8 Important Information (continued) Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective. For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are grandfathered and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings). All Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies. You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

9 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments9 Important Information (continued) You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

10 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments10 Important Information (continued) This presentation/seminar contains information regarding insurance products for sale.

11 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments11 2 that take the whole picture into account The ING Difference … to life planning about financial realities Fresh approach to life planning Straight talk that takes the whole picture into account Personalized solutions that takes the whole picture into account

12 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments12 1 cash out 2 stay in 3 roll over 14 Youve got options You may change employers, but what about your retirement savings plan?

13 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments % federal income tax 10% IRS premature distribution penalty if younger than 59 1/2 Additional taxes, based on tax bracket Loss of potential growth Option 1: Cash out (and lose out)

14 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments % lost to taxes and penalties, if only 80% vested in plan Todays cost of cashing out Source: IRS Publication 571, IRS January 2009

15 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments15 Long-term cost of cashing out *Initial cash out amount was $2,600. Assumes 5% expected rate of return over 35 years, 25% tax, $40,000 annual income and no additional contributions. Source:Financial Tools: Investment Fund, ING Presents No investment product is reflected and no fees or charges have been taken into account in the above illustration. Age 65

16 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments16 Long-term cost of cashing out Age 65 * Initial cash out amount was $2,600. Assumes 5% expected rate of return over 35 years, 25% tax, $40,000 annual income and no additional contributions. Initial Cash out amount is $2,600. Source:Financial Tools: Investment Fund, ING Presents No investment product is reflected and no fees or charges have been taken into account in the above illustration.

17 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments17 7 Dont close out in haste The old plan may be a strong option because of the cost, the investment options or any number of other factors Access to investment options not available outside your plan Option 2: Stay in your current plan

18 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments18 8 Option 2: Weigh the pros and cons Why not? Contributions, vesting have stopped Possible limited loans, withdrawals Lack of control, possible unattractive investment options Possible higher fees Why? Simple, no paperwork Maintain tax deferral Possible attractive investment options Possible lower fees

19 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments19 Two ways: 9 Roll over to your new employers plan. Roll over to your own plan. Option 3: Roll over to another plan ING does not offer tax advise. Please consult with your tax advisor regarding your individual situation.

20 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments20 10 The Indirect Route: You get the check, reinvest yourself Potential for taxes and penalties More work for you The Direct Route: Your plan transfers directly Easier Less expensive Option 3: Roll over the right way

21 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments21 11 Option 3: Move to a new employer plan Why? Consolidate all your assets Ability to transfer between investment options Maintain tax deferral Better options, choices Why not? May not be able to consolidate your assets Possible higher costs More paperwork Possible limited options, choices

22 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments22 Option 3: Moving to an IRA Tax-deferred accumulation Invest up to $5,000/year ($6,000 for age 50+) Wide range of funding options No loans 10% IRS premature distribution penalty for withdrawals before 59 1/2 12 Source: IRS Publication 590, IRS 2008

23 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments23 YesNoYesNo Income limits on non-deductible contributions? XX Annual contribution limit of $5,000 per person? XX Deductible contributions? XX Tax-deferred earning?XX Roll over to another plan?XX Source: IRS Publication 590, IRS 2008 Traditional IRA Roth IRA with restrictions Contributions are made with after-tax dollars. Option 3: Dare to compare your IRA choices

24 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments24 1 cash out 2 stay in 3 roll over 14 You decide

25 Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Retirement - Insurance - Investments25 14 Time to take action to life planning about financial realities Read on the topic. See your benefits manager. Check the Internet. Consult a professional.

26 To Move, Or Not to Move? Retirement Savings Options: Thanks for participating in


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