Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

1. Investments are not FDIC-insured, nor are they deposits of
or guaranteed by a bank or any other entity, so they may
lose value.
© 2009 American Funds Distributors, Inc.

2. Where are
you going?
Investing for life seriesSM
© American Funds Distributors, Inc. AI-40412

3. Choose your path
• Roll
• Move
• Stay
• Pay
© American Funds Distributors, Inc.

4. Roll
• Potential investment flexibility
• Continued tax-advantaged savings
• Consolidation of retirement savings
© American Funds Distributors, Inc.

5. Move
• Opportunity to consolidate your
retirement savings in one place
• Continued tax-deferred savings
© American Funds Distributors, Inc.

6. Stay
• Continued tax-deferred savings
• Can stay with same investments
© American Funds Distributors, Inc.

7. Stay
• The $5,000 rule
• Automatic rollover
• Cashout
© American Funds Distributors, Inc.

8. Pay
• The high cost of cashing out
• Starting with a $20,000 account balance
$20,000
$20,000
$15,000
$10,000
$5,000
$0
All taxes are based on a $20,000 lump-sum cash withdrawal for an investor under age 59½ in the 25% tax bracket. Retirement plan
distributions are subject to ordinary income tax, and, if applicable, to an additional 10% federal tax penalty on early withdrawals. Many
states will charge additional taxes and possible penalties, reducing your bottom line even further.
© American Funds Distributors, Inc.

9. Pay
• Minus 20% federal withholding
$20,000
$20,000
$16,000
$15,000
$10,000
$5,000
$0
All taxes are based on a $20,000 lump-sum cash withdrawal for an investor under age 59½ in the 25% tax bracket. Retirement plan
distributions are subject to ordinary income tax, and, if applicable, to an additional 10% federal tax penalty on early withdrawals. Many
states will charge additional taxes and possible penalties, reducing your bottom line even further.
© American Funds Distributors, Inc.

10. Pay
• Minus another 5% if you’re in the 25%
tax bracket
$20,000
$20,000
$16,000
$15,000
$15,000
$10,000
$5,000
$0
All taxes are based on a $20,000 lump-sum cash withdrawal for an investor under age 59½ in the 25% tax bracket. Retirement plan
distributions are subject to ordinary income tax, and, if applicable, to an additional 10% federal tax penalty on early withdrawals. Many
states will charge additional taxes and possible penalties, reducing your bottom line even further.
© American Funds Distributors, Inc.

11. Pay
• Minus 10% for an early withdrawal
penalty if you’re under age 59½
$20,000
$20,000
$16,000
$15,000
$15,000
$13,000
$13,000
$10,000
$5,000
$0
All taxes are based on a $20,000 lump-sum cash withdrawal for an investor under age 59½ in the 25% tax bracket. Retirement plan
distributions are subject to ordinary income tax, and, if applicable, to an additional 10% federal tax penalty on early withdrawals. Many
states will charge additional taxes and possible penalties, reducing your bottom line even further.
© American Funds Distributors, Inc.

12. $136,970
This illustration is not intended to portray results of a particular investment. Your investment experience will differ.
© American Funds Distributors, Inc.

13. Spend it or save it Web tool
AmericanFundsRetirement.com
© American Funds Distributors, Inc.

14. Make the best choice for you
Benefit Roll Move Stay Pay
Continued tax-advantaged
savings
  
Consolidation of your
retirement savings  
Potential investment
flexibility 
© American Funds Distributors, Inc.

15. Thank you
© American Funds Distributors, Inc.

16. This material was not intended or written to
be used by any taxpayer for the purpose of
avoiding penalties that may be imposed by the
U.S. federal tax laws. Please consult your tax
adviser about your particular financial and
tax situation.
You should carefully consider the objectives,
risks, charges and expenses of the American
Funds and, if applicable, any other investments
in your plan or IRA. This and other important
information is contained in the funds’
prospectuses and summary prospectuses,
which are available from your plan’s financial
professional and on the Web. Please read the
prospectuses carefully before investing.
© American Funds Distributors, Inc.