1.
401(k)s, IRAs, and Other Mysteries
Retirement Plans:
10 Things You Should Know
Presentation by Rudy Trebels

2.
You’ve been carefully socking away
the money for years, waiting,
patiently waiting, until you can take
it out to buy that vintage Airstream
ad travel the back roads.

3.
Before you withdraw, Here are 10
Things You Should Know About
Retirement Plans:

4.
1. Hands off my money!
❖ Corporate retirement plans are
exempt from greedy creditors,
and the same is true for IRAs
and Roth IRAs (in which case
up to $1 million is exempt).

5.
2. Check, please!
❖ Nearly half of American
workers cash out their 401(k)
savings when they change jobs
instead of rolling it over into an
IRA.

6.
3. It’s not completely locked up.
❖ You’re not always penalized
for taking money out of a
401(k) before age 59 and a half.
If you retire after age 55 and
take a distribution of some or
all of your 401(k) funds, there’s
no early distribution tax -
though you still have to pay
income tax on the amount
withdrawn.

7.
4. It goes the other way, too.
❖ Just because you have passed
age 59 and a half doesn’t
guarantee that you can take
money out of your retirement
plan. Many qualified plans do
not permit distributions while
you’re still working.

8.
5. No penalty, but lots of paperwork.
❖ At any age, you can start
taking out payments based on
your life expectancy or that of
you and your beneficiary. (The
IRS rules for doing this are
fiendishly complex, though.)

9.
6. What’s a Roth 401 (k)?
❖ Contributions to traditional
401(k) plans are tax-deductible,
but contributions to Roth
401(k) plans will not be.
Instead, the tax benefits for
Roth 401 (k)s will come when
you take distributions, which
will be tax-free as long as you
meet certain requirements.

10.
7. Keep on saving.
❖ Just because you are retired or
semi-retired doesn’t mean that
you can’t make tax-deductible
contributions to retirement
plans such as IRAs.

11.
8. Consider your rollover.
❖ When you leave a job, it might
be to your advantage not to roll
over all of your employers
stock into an IRA. Once you do
this, all future distributions
from the IRA will be taxed at
ordinary rates - not capital
gains rates.

12.
9. It’s a hopeful bunch.
❖ Sixty-four percent of U.S.
workers do not expect their
standard of living to decline in
retirement.

13.
10. Some dreamers in there, too.
❖ Thirty-two percent of U.S.
workers say they have not
saved for their retirement.

14.
Retirement Planning:
Best Websites

15.
www.401khelpcenter.com
The 401k Help
Center
has the most up-to-date information on
401(k) trends and news.

16.
www.aarp.org
AARP
has a solid financial planning and
retirement center with good IRA and
401(k) advice.
Click “Money” on the home page.

17.
http://finance.yahoo.com/retirement
Yahoo Retirement
and Planning Center
offers unbiased information on all things
related to retirement planning and
financing.

18.
www.ssa.gov
Social Security
Online
has a lot of helpful retirement planning
information as well as guidance in
calculating benefits.

19.
Source: Your little legal companion.
(2006). Berkeley, CA: Nolo.

20.
If you liked this piece, visit: RudyTrebels.us
❖ Rudy Trebels is the President and
CEO of Wedgewood Investment
Group. With over 35 years of
experience in financial services, Rudy
is known as a successful business
leader and innovator in his industry.
His company focuses on assisting
middle market business growth and
offers investment banking services
and financing existing assets or
construction of new assets. Rudy and
his team are highly skilled and have
worked with numerous investors
and lenders across the country.