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Is a Rollover into an IRA the Right Move for You as a OGE Energy Employee?

Healthcare Provider Update: Provides company health insurance, preventive care, ergonomic workstations, and wellness programs. Employees also receive group accident insurance and access to mental health services 2. With ACA insurers requesting double-digit hikes, OGEs internal health offerings may help employees avoid the financial strain of rising marketplace premiums. Click here to learn more

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

Internal management fees might be higher than in a OGE Energy-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 OGE Energy-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 OGE Energy.

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 is the purpose of OGE Energy's 401(k) Savings Plan?

The purpose of OGE Energy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to contribute a portion of their salary.

How can I enroll in OGE Energy's 401(k) Savings Plan?

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

What types of contributions can I make to OGE Energy's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, in some cases, catch-up contributions if they are age 50 or older in OGE Energy's 401(k) Savings Plan.

Does OGE Energy offer a company match for 401(k) contributions?

Yes, OGE Energy offers a company match for employee contributions to the 401(k) Savings Plan, which helps to enhance retirement savings.

What is the vesting schedule for OGE Energy's 401(k) company match?

The vesting schedule for OGE Energy's 401(k) company match typically follows a graded vesting schedule, which means employees become vested in the company match over a specified period of service.

Can I take loans against my 401(k) balance at OGE Energy?

Yes, OGE Energy's 401(k) Savings Plan allows employees to take loans against their account balance, subject to certain terms and conditions.

What investment options are available in OGE Energy's 401(k) Savings Plan?

OGE Energy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and potentially company stock, allowing employees to diversify their retirement savings.

How often can I change my contribution amount to OGE Energy's 401(k) Savings Plan?

Employees can change their contribution amount to OGE Energy's 401(k) Savings Plan at any time, typically through the HR portal or by contacting HR.

Is there a minimum contribution requirement for OGE Energy's 401(k) Savings Plan?

Yes, OGE Energy's 401(k) Savings Plan may have a minimum contribution requirement, which is typically outlined in the plan documents provided to employees.

How can I check my 401(k) balance with OGE Energy?

Employees can check their 401(k) balance with OGE Energy by logging into the plan's online portal or by contacting the plan administrator for assistance.