Take Charge of Your Money when you leave your job LFD [Presenter's Name] [Presenter's Title] [Presenter's Firm Information] [Date of Presentation]

2 Leaving Your Job LFD Source: US Bureau of Labor Statistics, August 27, 2002 Did you know? l The Average American holds 10 jobs between ages 18 and 36.

3 Leaving Your Job LFD America’s Financial Focus Finance retirement Live comfortably/enjoy life Pay for education Save money Home purchase Other Source: Employee Benefit Research Institute, 2004 Retirement Confidence Survey Most important savings goals:

4 Leaving Your Job LFD Sources of Retirement Income Sources of Aggregate Income for Ages 65 and Older (latest data available)

5 Leaving Your Job LFD Where do I go from here? ?

6 Leaving Your Job LFD Your Options l Leave your money where it is l Take it in cash l Roll it into another plan or an IRA

7 Leaving Your Job LFD Option 1: Remain in Your Plan l Advantages  Convenience  Tax-deferred growth l Disadvantages  Inability to contribute  Limited investment options  Additional record keeping  Possible restrictions

8 Leaving Your Job LFD Option 2: Cash Out of Your Plan l Advantages  Immediate access to your money l Disadvantages  Reduces retirement savings  Penalties and withholdings

9 Leaving Your Job LFD *Not to be construed as tax or legal advice. Option 2: The Cost of Cashing Out Plan Assets$50,000 20% IRS Withholding$10,000 FUTURE TAX ASSUMPTIONS 10% IRS Penalty $5,000 28% Federal Taxes $3,650 10% State Income Tax $5,000 Net after taxes and penalties* $26,350

10 Leaving Your Job LFD Option 3a: Rollover to Another Plan l Advantages  Convenience  Tax-deferred growth  Consolidated Reporting l Disadvantages  Limited options  Accessibility

11 Leaving Your Job LFD Option 3b: Indirect Rollover to an IRA l Advantages  Access to your money  Tax-deferred growth  Exempt from penalty

12 Leaving Your Job LFD Option 3b: Indirect Rollover to an IRA l Disadvantages  20% IRS withholding - You pay the 20% - You wait to receive a refund  Penalty if you miss the 60-day window

13 Leaving Your Job LFD Option 3b: Indirect Rollover Costs Plan Assets$50,000 20% IRS Withholding$10,000 10% IRS Penalty$0 28% Federal Taxes$0 10% State Income Tax$0 You invest distribution$40,000 Plus your own money$10,000 *Not to be construed as tax or legal advice.

14 Leaving Your Job LFD You are ahead $138,033 by opting for the Direct Rollover over cashing out. Not to be construed as tax or legal advice. Does not take into account fees and expenses associated with investments, nor does it consider the impact of taxes. Had these been reflected, overall would be lower. Assumptions: Plan assets: $50,000 Tax rate: 28% Annual return: 8% $50,000 $31,000 $95,015 Option 3c: Consider a Direct Rollover $233,048 Direct Rollover Cash Out of Plan In 20 Years

15 Leaving Your Job LFD Advantages of IRAs l Tax-deferred growth l Multiple investment options l Flexibility

16 Leaving Your Job LFD IRA Withdrawals l Ordinary tax rate applies l Required at age 70 1 / 2 l 10% early withdrawal fee if under age 59 1 / 2

17 Leaving Your Job LFD (t) Distribution: The IRA Advantage l Payments  Until 59 1 / 2 (minimum 5 years)  Paid at least annually  Equal payment amount l Calculations  Life expectancy  Amortization  Annuitization *Not to be construed as tax or legal advice.

18 Leaving Your Job LFD How 72(t) Could Work for You l Financial Goals  $2,000 monthly income  Grow investment  Protect retirement savings

19 Leaving Your Job LFD A 72(t) Distribution Plan

20 Leaving Your Job LFD Clear solutions in a complex world. ® Mutual Funds Managed Accounts Life Insurance Variable & Fixed Annuities Retirement Plans Mutual funds and variable insurance products are sold by prospectus only. Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. Please request a prospectus from your advisor and read it carefully before investing or sending money.

21 Leaving Your Job LFD Benefit from Professional Advice

22 Leaving Your Job LFD Seminar Developed by Lincoln Financial Distributors, Inc. l This information should not to be construed as tax or legal advice. You may wish to consult a tax advisor regarding this presentation as it relates to your personal circumstances. l Not a deposit. Not FDIC insured. Not insured by any federal government agency. Not guaranteed by any bank or savings association. May go down in value. l Lincoln Financial Distributors, Inc., a broker/dealer and member SIPC, is the financial intermediary distributor for Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. (ENT )