| At some point in the future, you will no | | | | taxes withheld when he files his tax return, |
| longer be working where you are. Whether it's | | | | but that could take a number of months. Why |
| because you retire, get laid off or change | | | | go through this hassle when using the correct |
| employers, it's your responsibility to be | | | | transfer method will avoid the 20% |
| prepared. It's a necessity -- your retirement | | | | withholding and will not make you scramble to |
| depends on it.That's because when it comes to | | | | find funds to cover the withholding |
| your pension funds, you have several options | | | | amount?Build Your Wealth and Retire |
| open to you when you leave your job. And if | | | | Financially Secure With Your 3 Other |
| you don't know what those options are, and | | | | OptionsYour other options include (1) leaving |
| choose the wrong one, you will have the IRS | | | | your money with your former employer's plan; |
| smack dab in the middle of your IRA. This | | | | (2) rolling it over to your new employer; or |
| means your chances of having the opportunity | | | | (3) rolling it over to an IRA.Each of these |
| for long-term tax deferred wealth building | | | | options will help keep the IRS out of your |
| become very slim.Option 1: Taking a lump-sum | | | | IRA, if you choose wisely and follow all the |
| distribution (cash out)Off the top, you will | | | | rules, which can be complex. However, there's |
| lose 20% of your accumulated money because | | | | more to consider than merely the tax |
| your employer is required to withhold this | | | | implications. What about growth? Safety? The |
| amount for federal taxes. Cashing out your | | | | next Enron?Retire Financially Sound or Retire |
| retirement plan is counted as receiving | | | | With Debt - It's Your Responsibility To Make |
| ordinary income, and depending on your tax | | | | The Right ChoiceSo, in conclusion, taking a |
| bracket (ordinary rates now reach 35%) you | | | | lump-sum distribution (cash out) from your |
| may end up owing even more than that 20%, and | | | | 401K means that all the money you withdraw |
| that doesn't include the state taxes that may | | | | will be subject to income tax at ordinary |
| apply as well.Furthermore, if you are younger | | | | income rates that now reach 35%. And don't |
| than 59½ (age 55 in some limited cases) | | | | forget that additional penalty of 10 percent |
| you will be penalized for an additional 10% | | | | on top of the ordinary income tax if you |
| off the top. So, our old pal Uncle Sam just | | | | leave your job before age 55. This will leave |
| slashed your retirement savings you have | | | | you with no tax deferred wealth building for |
| accumulated for your Golden Years by a third | | | | you and your family, which means there is a |
| or more!Avoid this entirely. (In fact, it's | | | | good chance you will not retire financially |
| difficult to even think of it as an | | | | secure. Is that what you want for you and |
| "option.")For example, Dan, age 50, left his | | | | your family?Avoiding all the pitfalls and |
| job. He had $100,000 in his employer's 401(k) | | | | dangers can be accomplished by choosing the |
| plan. Dan decided to take the money from the | | | | right kind of rollover for your IRA, based on |
| plan and open a self-directed IRA account. As | | | | your specific, individual and unique |
| a result Dan's former employer sent him a | | | | situation.Remember, this is your retirement |
| distribution check for $80,000 -- Dan's | | | | nest egg. The better you can protect it and |
| $100,000 account balance, less 20% | | | | invest it, the farther along the road to a |
| withholding. To avoid all income taxes and | | | | glorious retirement you will find |
| penalties, Dan must not only deposit the | | | | yourself.Paul Hooper, President of |
| $80,000 check within 60 days of the | | | | Marketracker Capital Management, Inc. can |
| distribution, he also must deposit $20,000 | | | | help you keep the IRS out of your IRA. Learn |
| (the amount withheld by his employer) by that | | | | how to make smarter choices with your money |
| same date. The $20,000 must come from sources | | | | by emailing to receive a FREE SPECIAL REPORT |
| outside of the distribution. If Dan does not | | | | full of ideas and tips on how to keep the IRS |
| have $20,000 from other sources, that amount | | | | out of your IRA and roll it over in a way |
| will be treated as a distribution and will be | | | | that will lead you to a life of prosperity. |
| subject to income taxes and penalties.Sure, | | | | Be sure to include SPECIAL REPORT in the |
| Dan will get this $20,000 back in the form of | | | | subject line to ensure a safe delivery. |