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Is a Rollover into an IRA the Right Move for You as a Medical Mutual of Ohio Employee?

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Medical Mutual of Ohio-sponsored plan. You may also gain more investment options than what may have been available in your Medical Mutual of Ohio-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 Medical Mutual of Ohio-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 Medical Mutual of Ohio should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Medical Mutual of Ohio-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 Medical Mutual of Ohio-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 Medical Mutual of Ohio.

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 savings plan does Medical Mutual of Ohio offer?

Medical Mutual of Ohio offers a 401(k) retirement savings plan for its employees.

Does Medical Mutual of Ohio match employee contributions to the 401(k) plan?

Yes, Medical Mutual of Ohio provides a matching contribution to employee contributions, up to a certain percentage.

What is the eligibility requirement to participate in the Medical Mutual of Ohio 401(k) plan?

Employees of Medical Mutual of Ohio are eligible to participate in the 401(k) plan after completing a specified period of service.

How can employees of Medical Mutual of Ohio enroll in the 401(k) plan?

Employees can enroll in the Medical Mutual of Ohio 401(k) plan through the company's HR portal or by contacting the HR department.

What investment options are available in the Medical Mutual of Ohio 401(k) plan?

The Medical Mutual of Ohio 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

Can employees of Medical Mutual of Ohio take loans against their 401(k) savings?

Yes, Medical Mutual of Ohio allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What is the vesting schedule for employer contributions in the Medical Mutual of Ohio 401(k) plan?

The vesting schedule for employer contributions at Medical Mutual of Ohio is outlined in the plan documents, typically based on years of service.

How often can employees change their contribution amounts in the Medical Mutual of Ohio 401(k) plan?

Employees can change their contribution amounts in the Medical Mutual of Ohio 401(k) plan at designated times throughout the year.

Does Medical Mutual of Ohio offer educational resources for employees regarding their 401(k) plan?

Yes, Medical Mutual of Ohio provides educational resources and tools to help employees understand their 401(k) options and investment choices.

What happens to my 401(k) savings if I leave Medical Mutual of Ohio?

If you leave Medical Mutual of Ohio, you can choose to roll over your 401(k) savings into another qualified retirement account or leave it in the Medical Mutual of Ohio plan, subject to certain conditions.