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Is a Rollover into an IRA the Right Move for You as a Applied Industrial Technologies Employee?

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Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Applied Industrial Technologies-sponsored plan. You may also gain more investment options than what may have been available in your Applied Industrial Technologies-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a Applied Industrial Technologies-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that Applied Industrial Technologies should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Applied Industrial Technologies-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former Applied Industrial Technologies-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from Applied Industrial Technologies.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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What type of retirement plan does Applied Industrial Technologies offer?

Applied Industrial Technologies offers a 401(k) retirement savings plan for its employees.

How can employees of Applied Industrial Technologies enroll in the 401(k) plan?

Employees can enroll in the 401(k) plan by completing the enrollment process through the company's HR portal or by contacting the HR department for assistance.

Does Applied Industrial Technologies match employee contributions to the 401(k) plan?

Yes, Applied Industrial Technologies offers a matching contribution to employee 401(k) contributions, subject to the terms of the plan.

What is the maximum contribution limit for the 401(k) plan at Applied Industrial Technologies?

The maximum contribution limit for the 401(k) plan at Applied Industrial Technologies is in accordance with IRS guidelines, which may change annually.

When can employees of Applied Industrial Technologies start contributing to the 401(k) plan?

Employees of Applied Industrial Technologies can start contributing to the 401(k) plan after they have completed their eligibility period, which is typically outlined in the employee handbook.

Can employees of Applied Industrial Technologies take loans against their 401(k) savings?

Yes, Applied Industrial Technologies allows employees to take loans against their 401(k) savings, subject to the plan's rules and limits.

What investment options are available in the Applied Industrial Technologies 401(k) plan?

The 401(k) plan at Applied Industrial Technologies offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the 401(k) plan at Applied Industrial Technologies?

Employees can change their contribution amounts to the 401(k) plan at Applied Industrial Technologies during designated enrollment periods or as specified by the plan.

What happens to the 401(k) savings if an employee leaves Applied Industrial Technologies?

If an employee leaves Applied Industrial Technologies, they have several options for their 401(k) savings, including rolling it over to another retirement account or leaving it in the Applied Industrial Technologies plan if allowed.

Is there a vesting schedule for the employer match in the Applied Industrial Technologies 401(k) plan?

Yes, there is a vesting schedule for the employer match in the Applied Industrial Technologies 401(k) plan, which determines when employees fully own the matched contributions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

News: Applied Industrial Technologies announced a restructuring plan to streamline operations and reduce costs, resulting in a workforce reduction of 10%.
Importance: This restructuring is crucial to monitor due to its implications on employee benefits and the company’s financial stability amid a volatile economic environment. The changes could impact pension and 401(k) plans, and it's essential to stay informed about these adjustments to make informed investment and retirement planning decisions.

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For more information you can reach the plan administrator for Applied Industrial Technologies at 1 Applied Plaza Cleveland, OH 44115; or by calling them at (216) 426-4000.