* Cashing out can be a costly option. In addition to losing the tax deferred status of your assets, your employer will withhold 20% of your account balance at the time of distribution. The IRS may consider your payout an early distribution, which means you could owe the 10% early withdrawal penalty on top of combined federal, state and local taxes.
**as of 3/31/19
Before deciding on which option is the right solution, investors should consider each option and the impact on investment options, fees and expenses, services, protection from creditors and legal judgments, withdrawal rules and potential penalties, and required minimum distributions. For investors with employer stock, there are additional considerations to be aware of, such as the Net Unrealized Appreciation strategy. The FINRA Investor Alert Opens in new window provides more information on what to consider before moving assets.
For Compliance Use Only 1030781-00002-00