name of the speaker registered representative date to move, or not to move? 3017712.x.p-1...
TRANSCRIPT
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Name of the speakerRegistered RepresentativeDate
To Move, Or Not to Move?
3017712.X.P-1 C10-0827-008 (09/10)
Retirement Rollover Options:
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Retirement - Insurance - Investments 2
Important Information
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Variable annuities issued by ReliaStar Life Insurance Company are distributed by ING Financial Advisers, LLC. Variable annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York are distributed by Directed Service, LLC. Only ING Life Insurance Annuity Company and ReliaStar Life Insurance Company of New York are admitted and issue products in the state of New York. All companies are members of the ING Family of companies.
© 2011 ING North America Insurance Corporation.
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Retirement - Insurance - Investments 3
Important Information
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company ( Windsor, CT). Securities are distributed by ING Financial Advisers, LLC (member SIPC), Windsor, CT or through other broker/dealers with which it has selling agreements. Annuities may also be issued by ING USA Annuity and Life Insurance Company (Des Moines, IA) and are distributed by Directed Services, LLC. All companies are members of the ING Family of companies.
© 2011 ING North America Insurance Corporation.
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Retirement - Insurance - Investments 4
Important Information
Securities and [financial planning] offered through ING Financial Partners, (member SIPC), 909 Locust Street, Des Moines, IA 50309 or other Broker/Dealers with which it has a selling agreement.
© 2011 ING North America Insurance Corporation.
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Retirement - Insurance - Investments 5
Important Information
Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC.
© 2011 ING North America Insurance Corporation.
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Important Information
Registered representative and retirement educational seminars are provided by ING Investment Advisors, LLC. These educational seminars are provided to you as a supplemental service to your plan sponsor as part of the Plan Administrative services provided by ING Institutional Plan Services, LLC. The information contained herein should not be constituted as (i) an offer to sell or solicitation of an offer to buy an security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. You should contact your investment representative (or advisor), attorney, accountant or tax advisor, with regard to your individual situation prior to implementing a retirement plan strategy.
Retirement - Insurance - Investments 6
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Retirement - Insurance - Investments 7
Important Information
Framewor(k) and (k)Choice Recordkeeping and Plan administrative services provided by ING Institutional Plan Services, LLC. Mutual funds offered through ING Financial Advisers, LLC (member SIPC).
© 2011 ING North America Insurance Corporation.
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Retirement - Insurance - Investments 8
Important Information (continued)
Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.
For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).
You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.
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Retirement - Insurance - Investments 9
Important Information (continued)
Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective.
For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).
All Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies.
You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.
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Retirement - Insurance - Investments 10
Important Information (continued)
You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.
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Retirement - Insurance - Investments 11
Important Information (continued)
This presentation/seminar contains information regarding insurance products for sale.
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Retirement - Insurance - Investments 122
that take the whole picture into account
The ING Difference …
to life planning
about financial realities
Fresh approach
to life planning
Straight talk
that takes the whole picture into account
Personalized solutions
that takes the whole picture into account
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Retirement - Insurance - Investments 13
1cash out 2 stay in 3 roll over
14
You’ve got options
You may change employers, but what about your retirement savings plan?
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• 20% federal income tax
• 10% IRS premature distribution penalty if younger than 59 1/2
• Additional taxes, basedon tax bracket
• Loss of potential growth
Option 1: Cash out (and lose out)
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35% lost to taxes and penalties, if only 80% vested in plan
Today’s cost of cashing out
•Source: IRS Publication 571, IRS January 2009
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Long-term cost of cashing out
0
5,000
10,000
Age 3
0
Age 6
5* Initial cash out amount was $2,600. Assumes 5% expected rate of return over 35 years, 25% tax, $40,000 annual income and no additional contributions. Initial Cash out amount is $2,600.
•Source:Financial Tools: Investment Fund, ING Presents
•No investment product is reflected and no fees or charges have been taken into account in the above illustration.
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• Don’t close out in haste
• The old plan may be a strong option because of the cost, the investment options or any number of other factors
• Access to investment options not available outside your plan
Option 2: Stay in your current plan
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Option 2: Weigh the pros and cons
Why not?
• Contributions, vesting have stopped
• Possible limited loans, withdrawals
• Lack of control, possible unattractive investment options
• Possible higher fees
Why?
• Simple, no paperwork
• Maintain tax deferral
• Possible attractive investment options
• Possible lower fees
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Retirement - Insurance - Investments 19
Two ways:
9
Roll over toyour new employer’s
plan.
Roll over to your own plan.
Option 3: Roll over to another plan
ING does not offer tax advise. Please consult with your tax advisor regarding your individual situation.
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Retirement - Insurance - Investments 2010
The Indirect Route:
•You get the check, reinvest yourself
• Potential for taxes and penalties
• More work for you
•
The Direct Route:
• Your plan transfers directly
• Easier
• Less expensive
Option 3: Roll over the right way
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Option 3: Move to a new employer plan
Why?Why?
• Consolidate all your assets
• Ability to transfer betweeninvestment options
• Maintain tax deferral
• Better options, choices
Why not?
• May not be able to consolidate your assets
• Possible higher costs
• More paperwork
• Possible limited options, choices
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Option 3: Moving to an IRA
• Tax-deferred accumulation
• Invest up to $5,000/year ($6,000 for age 50+)
• Wide range of funding options
• No loans
• 10% IRS premature distribution penalty for withdrawals before 59 1/2
12
•Source: IRS Publication 590, IRS 2008
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Yes No Yes No
Income limits on non-deductible contributions?
X X
Annual contribution limitof $5,000 per person?
X X
Deductible contributions? X X
Tax-deferred earning? X X
Roll over to another plan? X X
•Source: IRS Publication 590, IRS 2008
Traditional IRA Roth IRA
with restrictions Contributions are made with after-tax dollars.
Option 3: Dare to compare your IRA choices
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1cash out 2 stay in 3 roll over
14
You decide
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Time to take action
to life planning
about financial realities
Read on the topic.
See your benefits manager.
Check the Internet.
Consult a professional.
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To Move, Or Not to Move?
Retirement Savings Options:
Thanks for participating in