Deferred Compensation Puts You in Control
Deferred compensation puts you in control of when, where and how much you invest. But, that’s just the beginning. When you retire, you’re also in control of when you access your money and how long you choose to leave it in your plan to possibly grow for you, until you reach 70½ and are required to take minimum distribution. There are plenty of benefits to staying active with your deferred comp account after retirement.
When you’re considering investing, you’ll want to keep in mind that you will face market risk. It’s always there and, because of it, you could lose what you invest. We can help you understand market risk and the ways to possibly reduce its impact to your plan account.
Benefits of staying in the plan
Unless you need your money now, staying in the plan should be a no-brainer.
In retirement, when you decide to keep your money in your plan, you’ll continue to receive personal attention from non-commissioned Retirement Specialists. More reasons to stay active in the plan include:
- Watching your money potentially continue to grow, tax-deferred
- Delaying a 20% withholding of the taxable portion of your money for federal income taxes, until you may be in a lower tax bracket. Withdrawals are then taxed as ordinary income.
- Delaying state and local taxes, until you may be in a lower tax bracket
- Retaining access to your money – if you roll your money into another plan, you’re subject to the rules of the new plan, and access to your money may be limited
Benefits of combining assets
After retirement, you may make managing your money easier by combining your other assets with your plan. Combining your assets with Nationwide, an industry leader in retirement plans, can benefit you because:
- Paperwork is simplified
- You may pay less in annual account fees
- You receive personal help from Retirement Specialists throughout retirement
As you consider combining assets into your deferred comp account, bear in mind that qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½. Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your legal or tax advisor for such advice.
Get the help you need
Talk with one of our Retirement Specialists for more information.