• BRANCHES/ATMs
  • APPLY FOR A LOAN
  • OPEN AN ACCOUNT
  • RATES
  • CONTACT US
Menu
  • Personal Banking
    • Close
    • Accounts
      • Certificates
      • Checking Accounts
      • Cub Account
      • Direct Deposit
      • Individual Retirement Accounts (IRAs)
      • Money Market Accounts
      • Savings Accounts
    • Online Services
      • Online Banking
      • Mobile Banking
      • AnytimeDeposit
      • Online Statements
      • Digital Wallets
      • Bill Pay
      • Debit Card
      • Telephone Banking
    • Loans
      • Vehicle Center
      • Home Equity Loans
      • Personal Loans
      • Credit Cards
      • Student Loans
      • Credit Reports and Credit Management
      • Payment Protection and GAP
      • Calculators
    • Mortgage Center
      • Apply Online
      • First Time Home Buyers
      • Home Advantage Program
      • Mortgage Options
      • Mortgage Refinancing
  • Business Banking
    • Close
    • Loans
      • Commercial Mortgages
      • Credit Cards
      • Lines of Credit
      • Medical Malpractice Premium Financing
      • Term Loans
    • Accounts
      • Checking Accounts
      • Savings Accounts
    • Treasury Management
      • Online Banking w/FREE Bill Pay
      • Mobile Banking with AnytimeDeposit
      • Merchant Services
      • Remote Deposit Capture
      • Treasury Tax & Loan Payment
  • Wealth Management
    • Close
    • Wealth Management
      • Financial Advisors
      • College Planning
      • Estate Planning
      • Insurance
      • Retirement Planning
    • Life Planning Center
      • Free White Papers
      • Investing for Retirement
      • Paying for College
      • More Topics
Back
Franklin Mint Federal Credit Union
Related Links
Find Someone To Help
  • Connect with an IRA Specialist
Free Quick Guides
  • Individual Retirement Plans
  • Additional Guides
Your Financial Checklist
  • Create Checklist
Life Planning Center > Getting Ready To Retire / Retired
Distributions from Your Retirement Plan
  • Introduction
  • What Initiates a Distribution?
  • Five Dates You Should Know
  • Selecting a Distribution Option
  • Deciding on a Payout Option
  • Annuity Form of Payout
  • Advantages and Disadvantages of Taking an Annuity
  • Taking a Lump-Sum Distribution: Know Your Options
  • Annuity vs. Managing Your Own Retirement Assets
  • Advantages and Disadvantages of a Lump-Sum Distribution
  • The Roth IRA–How Does It Fit In?
  • Making the Decision: Annuity or Lump-Sum?
  • Taxation of Distribution Options
  • Rollover into a Traditional IRA
  • Advantages and Disadvantages of Rollover to a Traditional IRA
  • Annuity Payouts
  • Early Distributions
  • Should You Defer Your Retirement Plan Distribution as Long as Possible?
  • Distributions Following Death

Rollover into a Traditional IRA

If you don't need your retirement money in a hurry, rolling it over into a traditional IRA may make sense. Instead of putting the money into a bank account or other investment and paying tax on the earnings, you can defer taxes on both the contributions and the earnings if you put the money in a traditional IRA.

  • Connect with an IRA Specialist

By rolling funds into a traditional IRA, you generally will have more control over the timing of the distribution payments and the investment of the undistributed funds. You can invest the money in practically anything you want (there are a few restrictions, such as not being able to invest an IRA in collectibles), although we suggest you remain more conservative in your retirement years (see the section Fine-Tuning Your Investment Strategy).

It is to your advantage to make it a direct rollover. This way, you don't have to get involved in the transfer and no income taxes will be withheld. If you are still working in retirement, you may have the option of rolling your qualified retirement plan money into the new employer's qualified plan.

IMPORTANT NOTE: If you receive the distribution (i.e., you don't do a direct rollover) and then decide to roll it over to a traditional IRA, you must complete the rollover generally within 60 days.

IMPORTANT NOTE: Since the federal government limits contributions to qualified plans, some employees also participate in nonqualified plans. Unlike qualified plans, money from a nonqualified plan generally cannot be rolled over into an IRA.

  • Next
Share Article:
Add to Facebook Add to Twitter Add to LinkedIn Add to GooglePlus

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Franklin Mint Federal Credit Union and Mint Wealth Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Mint Wealth Advisors, and may also be employees of Franklin Mint Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Franklin Mint Federal Credit Union or Mint Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

Not NCUA Insuredor Any Other Government Agency No Credit Union Guarantee Not Credit Union Deposits May Lose Value

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: NJ, PA, NY, DE, AZ, MI, FL, MD, TX, VA, GA, NC.



Financial Learning Center content created by TrueBridge, Inc. The information provided is based upon sources and data believed to be accurate and reliable. The content contained herein is intended for information and illustrative purposes only, should not in any way be construed as a personal recommendation, and should be used in conjunction with individual professional advice.

Routing Number
231382306

Member Service Center
610-325-5100 (Local)
800-220-3193 (Outside PA)

Corporate Office
5 Hillman Drive, Suite 100
Chadds Ford, PA 19317-9998

  • PRODUCTS & SERVICES
    • Personal Banking
    • Business Banking
    • Online Services
    • Wealth Management
    • Insurance
    • Rates
    • Calculators
  • FMFCU INFO
    • About FMFCU
    • Business Partners
    • Careers At FMFCU
    • Choices Magazine
    • Community & Education
    • In The News
    • FMFCU Foundation
  • RESOURCES
    • Contact Us
    • Disclosures
    • Life Planning Center
    • Member Support
    • Privacy Policies
    • Refer A Friend
    • Security Center

Social Circle

Copyright © 2020 Truebridge, Inc.
All Rights Reserved