Distribution options

You've worked hard to build the savings in your former employer's plan, so take this opportunity to explore your options and make the choice that's appropriate for you.


Consider the options for your retirement plan accounts:

Distribution Option 1
Keep your account balance in your former employer's retirement plan

If you're satisfied with your existing investment choices, this may be a good option for you. (See Why Stay in the Plan? for more information.) On the other hand, rolling over your savings to an IRA or a new employer's plan may offer you a broader range of investments.

However:

  • You may be charged fees and some account transactions will be restricted
  • You won't be able to contribute more money to your account or take a loan
Distribution Option 2
Transfer your account balance to an Individual Retirement Account (IRA)

An IRA generally provides you with enhanced investment flexibility by offering you a greater variety of investments than you would find in a typical employer's retirement savings plan. Essentially, if you want more control over your retirement saving strategy, an IRA may be an appropriate option for you.

However:

  • The investments available in your former employer's retirement plan may not be available in the IRA
  • There will be different fees associated with your new account
  • You cannot take a loan (as you may be able to do from a current employer's plan)

Ready to roll? Learn how »

Distribution Option 3
Move your account balance to your new employer's retirement plan

If you've taken a look at the investment choices, plan rules, and service features available in your new employer's retirement plan and you like what you see, you may want to move your account balance to the new qualified retirement plan.

However:

  • The new employer's plan may contain fewer investments than an IRA
  • Your withdrawal and distribution options could be limited
Distribution Option 4
Cash out your account balance

Cashing out your account to make a large purchase or pay for current expenses might seem like a good idea. But, it can impact your future financial security. That's because you typically incur severe taxes and potential penalties as well as sidetrack your progress toward your retirement savings goals.

See the high cost of cashing out:

For example: Taking
a cash
distribution		 Rolling over
your account
balance
If your retirement savings balance is: $100,000 $100,000
Your federal income tax (at 25% rate) will be: - $25,000 - $0
Your 10% early withdrawal penalty will be: - $10,000 - $0
Your remaining balance will be: $65,000 $100,000
Retirement planning
Access the Mercer Rollover Network
 

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Before investing, consider the investment options’ or funds’ investment objectives, risks, charges and expenses. Please call 1-800-685-6474 or visit your plan’s website for an offering statement or for a fund prospectus and, if available, a summary prospectus containing this and other information. Read it carefully.

Mercer Securities brokerage transactions are cleared through Pershing LLC, Member of FINRA, NYSE, and SIPC.

Mercer Securities Retirement Specialists are Registered Representatives of Mercer Securities.

Mercer HR Services and MMC Securities Corp. are affiliates of and owned by Marsh & McLennan Companies and are not affiliated with Pershing LLC.

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A division of MMC Securities Corp., Member FINRA/SIPC.