If an employee chooses to roll his or her money into an IRA, they must choose a company to invest the IRA assets. The former employer will cut a check made payable directly to the IRA trustee. Because there is no cash distribution, no taxes are withheld. With an IRA, the employee may choose in the future to roll the IRA back into another eligible employer-sponsored retirement plan.

To assist employees with more information regarding rollovers, Ohio National's Retirement Guide (Form 3864) details both benefits and drawbacks for each of the four options discussed above. Take the time to read the Retirement Guide and familiarize yourself with all the differences focusing attention on rolling assets into the new employer's plan.

Other Considerations

Certain retirement plans are portable and may be rolled into other retirement plans. Check with your Ohio National Retirement Plan Wholesaler for more information on which types of retirement plans may be rolled into other plans.

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