Rollovers and Transfers

Keep Your Money Growing - Smart Decision

Whether you are changing jobs, leaving the workplace temporarily, or you have retired and don't need to spend the money right away, giving your account more time to grow is the Smart Decision. By choosing this option you allow the savings that you've worked so hard to accumulate to continue working for you with the power of compounding. These principles apply regardless of the size of your retirement savings account.

Benefits of Keeping Your Money Growing

  • Preservation of your retirement savings.
  • Potential for continued growth.
  • Postpone federal and state income taxes.
  • Avoid penalties on distributions prior to age 59 1/2.
  • Investment control.
  • Future IRA or Roth IRA conversion option.

Additionally, by keeping your money growing in a tax-deferred account the federal and state income tax laws continue to work in your favor. While you were employed, any earnings on the money invested in your CCOERA account were not subject to federal or Colorado state income taxes. This special tax treatment helps your account grow much faster than a traditional after-tax account, creating a greater retirement benefit for you in the future. You will continue to reap the benefits of this tax strategy until the money in your retirement savings account is withdrawn.

 

IRA Rollover

By choosing a direct rollover to an IRA with another retirement plan provider the money in your account is transferred directly into an account that continues to maintain a tax-deferred status. The laws regarding pension portability allow you to rollover all of the money in your account, including deferred compensation balances. However, some investment providers may not accept a rollover of deferred compensation money, due to the unique tax treatment of these types of funds. CCOERA maintains the systems and expertise necessary to administer both retirement plan accounts and deferred compensation accounts - separately or together.

Procedure:
To execute a direct rollover of your CCOERA 401(a) Retirement account (or your CCOERA 457 Deferred Compensation account) to an IRA, you and your employer representative will need to complete Form 4.

Benefits of an IRA Rollover

  • Continued Growth
  • Postpone Taxes
  • Avoid Potential Early Withdrawal Penalties
  • Consolidate Your Retirement Savings Accounts

Downside of an IRA Rollover

  • Potentially Higher Expenses and Fees (if rolling to a new investment provider)
  • Investment Options (if rolling to a new investment provider you'll be limited to their investment options)
  • Surrender Early Retirement Provision

Transfer to Another Plan

With the average American worker changing jobs eleven times during their lifetime many find it convenient to consolidate their retirement assets by taking the money with them from one employer to the next. However, retirement plans among different employers can vary widely; therefore, the primary consideration should be the quality of investments offered, expenses and fees, and available planning services. So before you complete the necessary forms to initiate this process, it's crucial that you consider all of the potential implications.

Procedure:
To transfer your CCOERA Retirement Plan and/or CCOERA Deferred Compensation account(s) to your new employer's retirement plan, you and your employer representative will need to complete Option "D" (Section 4) of Form 4.

Benefits of a Transfer

  • Consolidate Your Retirement Savings Accounts
  • Continued Growth
  • Postpone Taxes
  • Avoid Potential Early Withdrawal Penalties
  • Potential for Plan Loans

Downside of a Transfer

  • Potentially Higher Expenses and Fees (if rolling to a new investment provider)
  • Investment Options (if rolling to a new investment provider you'll be limited to their investment options)
  • Plan Flexibility – you become subject to the rules governing the new plan
  • 457 Deferred Compensation – your new employer's plan may not accept these types of transfers
  • Surrender Early Retirement Provision

Consolidate Other Retirement Assets With Your CCOERA Account

After considering all of the pros and cons listed above, you may decide your best alternative is to keep your CCOERA Retirement Savings Accounts. Additionally, you may want to rollover your other existing and future retirement accounts to a CCOERA IRA. All of the money invested in your CCOERA Retirement Savings Account continues to grow tax-deferred, sheltered from current income tax. While your money is left to grow under one of these arrangements you will continue to maintain complete control over investment selection for the money in your account, just as you have in the past. Finally, you will continue to be eligible for all of CCOERA's professional retirement counseling and investment advisory services, as well as any new investment products or services added in the future.

 

Procedure:
To transfer retirement accounts from a previous employer or an IRA into your CCOERA Retirement Account you will need to contact the administrator for that plan to request a "Direct Rollover Form." This will allow for a direct transfer of other retirement savings from the existing retirement plan to your CCOERA Retirement Account without any tax implications. Also, you will need to provide CCOERA with investment instructions for amounts rolled over from other plans by completing CCOERA's Form 8 Qualified Plan Rollover if you are transferring from a previous employers retirement plan or an IRA, and/or CCOERA's Form 9 457 Deferred Compensation Provider Transfer if you are transferring assets from another 457 deferred compensation plan. If you have questions or require assistance with the transfer/rollover process, please contact us at (800) 352-0313.

 

Benefits of Consolidating Retirement Accounts

  • CCOERA offers lower maintenance fees compared to most other retirement administrators
  • Convenience - all of your retirement assets in one account, reported on one statement, with access through one telephone number or web site
  • Comprehensive retirement planning and investment advice on all of your retirement savings
  • Access to thousands of investment options