1. Rolling Over Your Old Workplace Savings Plan
Pinnacle Property Management Services
Rolling Over Your Old Workplace Savings Plan
Welcome to the Rolling Over Your Old Workplace Savings Plan e-learning workshop.
On the bottom of your screen you will see the workshop viewer controls. You can let the slides for this workshop advance automatically or click the control buttons to advance, pause or select certain slides you would like to watch.

2. Rolling Over Your Old Workplace Savings Plan
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What should you consider?
Today’s agenda:
The rollover option available for your old workplace savings plan
The benefits of simplifying your finances for easier account management
Next steps in handling your old workplace savings plans
The goal of this workshop is to help you understand how to roll over your old workplace savings plan into your new workplace savings plan. Today we will discuss:
The rollover option available for your old workplace savings plan
The benefits of consolidating your retirement accounts for easier account management
Next steps in handling your former workplace savings plans
Let’s get started describing why you may wish to rollover your old workplace savings plans.

3. Rolling Over Your Old Workplace Savings Plan
When to Rollover Your
Old Workplace Savings Plan
Change of employers and money left in old plan
Old workplace savings plan has been terminated due to a corporate action
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You may be in a position to rollover assets from your old workplace savings plan into your new workplace savings plan if:
You have taken a new job at a new employer or
Your old workplace savings plan was terminated due to a company merger or other type of corporate action
Let’s take a few minutes to discuss the potential benefits of a rollover and some things you should consider.   

4. Rolling Over Your Old Workplace Savings Plan
Moving your money
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Potential benefits
Things to consider
Continued tax-deferred savings
Consolidation of multiple accounts for ease of management
Ability to invest in plan-specific investment options and/or managed-money services
May be able to take a loan
May be able to defer required distributions if over age 70½ and still working
Limited number of investment options
Options for your beneficiaries may be limited
You will be subject to all provisions of the plan
Special tax treatment for company stock when you take stock in the form of stock certificates (net unrealized appreciation)
Whether your old plan was terminated or you’ve changed employers, you may be able to roll over all or any portion of your eligible vested plan account balance to your new workplace savings plan.
This option may be the right choice for you if you:
Anticipate you may need to take a loan from your workplace savings plan
Are over age 70½, still working, and want to defer your required distributions
However, be aware that:
Not all plans offer the ability to take out loans
You will be limited to your new employer’s plan investment options.
There may be limitations on withdrawing rollover assets, and your plan may force you to take a distribution upon certain events, including death, disability, and/or separation from service.
You may be considering cashing out your old workplace savings plan instead of rolling it over. Taking a lump sum cash distribution essentially means you receive a check for your retirement plan account balance. Advantages to this are:
You get immediate access to the cash
Eligible amounts can still be rolled over to your new workplace savings plan within 60 days of receiving the distribution
However, while this is always an option, it’s not always such a great deal to take that lump sum. Let’s take a look at the tax consequences of doing so now, and in retirement.
Keep in mind that fees may apply when closing and consolidating accounts.

5. Rolling Over Your Old Workplace Savings Plan
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Calculating the tax hit of a cash distribution
Hypothetical illustration of the tax implications from taking a cash distribution
Your distribution will be subject to ordinary state and federal income taxes. In fact, 20% federal tax must be withheld from your distribution. And you may owe more when you file your taxes, depending on your tax bracket.
In addition, you may also be subject to a 10% early withdrawal penalty if you are under age 59 ½, unless an exception applies.
If you have a loan, it must be paid off prior to requesting your distribution, or a taxable distribution of your outstanding loan balance will occur.
If you are thinking of electing the special tax treatment available for employer stock, a cash distribution of the stock would prohibit you from electing it.
Most importantly, though, taking a cash distribution will leave you with less money saved for retirement, and those assets will no longer be tax advantaged
Let’s take a look at a hypothetical example of someone taking a cash distribution out of their employer’s retirement plan. Assume this participant starts with an account balance of $50,000 in their employer’s retirement plan, and he decides to liquidate the assets and take that as a cash distribution. With any cash distribution from a qualified plan, before you even get your check, your employer is required by law to withhold 20% of the assets toward prepayment of federal income taxes. In our example, that reduces the $50,000 by $10,000.
Then, depending on his tax bracket, he might owe additional federal income taxes when he files his tax return. For example, if he was in the 25% tax bracket, he would owe another 5%. In our example, that’s another $2,500 he won’t have to spend or reinvest for his future. If this participant is younger than 59½, it’s likely that another 10% of his assets will go to pay an early withdrawal tax penalty imposed by the IRS (exceptions apply). In our example, that’s another $5,000 gone. This means the $50,000 has already dwindled to $32,500, so this participant has hypothetically lost 35% of his savings just for taxes and penalties right off the bat! And, depending on where he lives, he may also have to pay state and local taxes.
So you can see, liquidating the assets and taking a cash distribution not only leaves this participant with less to spend now, but it could certainly affect how much he has to spend later. And if he reinvest the assets in a taxable account, any earnings on his investments will no longer be tax-deferred.
Please note that we have used a 25% federal income tax rate in this example based on current tax rates. These rates are subject to change in the future. You may owe more or less taxes than this example.
*Hypothetical example for illustrative purposes only. The example assumes a 25% federal income tax bracket and that the person is under 59½ and subject to the 10% early withdrawal penalty. State and local taxes are not taken into account.

6. Rolling Over Your Old Workplace Savings Plan
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Simplify your finances
Keep all of your assets in one place
Fewer statements
Track overall performance
Maintain investment strategy of choice
At Fidelity, we believe that consolidating your old workplace savings accounts in one place is an important part of a sound financial strategy. Consolidating accounts can make them easier to manage, provide easier diversification opportunities and give you more control over these savings.
And consolidating accounts can help you see your whole financial picture in one place so you are in a better position to make smart decisions with your savings – from monitoring your performance to maintaining your asset allocation.
The average US worker changes employers every four years.* That’s a lot of old workplace savings plans that can get left behind. If you have multiple workplace savings plan accounts left at a former employers, now is a great time to think about bringing them together into a single account.
*US Department of Labor, as of 2012.
Keep in mind that fees may apply when closing and consolidating accounts.

7. Rolling Over Your Old Workplace Savings Plan
Phone
Contact a Fidelity Representative at
Fidelity NetBenefits®
has a host of tools and information to help you determine your next step.
If you’re like most investors, your retirement savings are your largest asset, and deciding how to handle them is one of your most important financial decisions. But you don't need to go it alone. Fidelity can help you understand your options and help you consider the choices that are best for your retirement.
You can speak to a representative by calling your plan’s toll free number.
And if your old workplace savings plan is already at Fidelity, we can help you with the rollover process.
Your New Workplace Savings Plan
Guidance provided by Fidelity is educational in nature, is not individualized and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

8. Important information
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The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield RI 02917
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield RI 02917