Smart Ways to Retire
your 401k

Annuity Advantage can help you make the financial decision that is right for you when it comes to retiring your 401k. Our specialists will take the time to break down all of your options when it comes to this important decision as well as provide the guidance of an experienced professional to help you through the process.

There are three different options when retiring your 401k:

  1. You can take the money as a lump sum, paid directly to you. However, your employer will be required to withhold 20 percent of the account balance for income tax purposes. In addition, if you are under the age of 59 ½, you will likely be subject to an additional 10 percent IRS penalty.
  2. Many employers offer an annuitization option…where you can convert your 401k account balance into a series of monthly lifetime income payments. However, you give up control of your principal balance and you are stuck with the limited payment options offered through your employer.
  3. A more popular option is rolling over all 401k assets to an IRA. This option allows you to avoid the 20% withholding and continue the tax deferred status of your funds. You will only pay income taxes on the money you withdraw from the IRA, if and when you decide to withdraw it.

To fully understand the pros and cons of each 401k retirement choice available to you, contact Annuity Advantage today. We can provide you with more free information about our annuities and IRA options. Fill out the form on this page if you would like to receive our brochure with more information via e-mail. Here at Annuity Advantage, we value your privacy and confidence. All information that is submitted will be kept secure and confidential. Contact us today to find out how you can make a positive impact on your retirement.

Optional Comments: For example, you may tell us what you would like to accomplish with your annuity or if you have any special requirements, etc.

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To speak with a licensed Annuity Specialist, call us toll-free at 1-800-239-0356