Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Paramount Global-sponsored plan. You may also gain more investment options than what may have been available in your Paramount Global-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.
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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 Paramount Global-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 Paramount Global should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Paramount Global-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 Paramount Global-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 Paramount Global.
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 Paramount Global offer to its employees?
Paramount Global offers a 401(k) retirement savings plan to its employees.
Is there a company match for contributions made to the 401(k) plan at Paramount Global?
Yes, Paramount Global provides a company match for employee contributions to the 401(k) plan, subject to certain limits.
How can employees at Paramount Global enroll in the 401(k) plan?
Employees at Paramount Global can enroll in the 401(k) plan through the company's benefits portal or by contacting the HR department for assistance.
What is the eligibility requirement for participating in the 401(k) plan at Paramount Global?
Employees must meet specific eligibility criteria, such as age and length of service, to participate in the 401(k) plan at Paramount Global.
Can employees at Paramount Global take loans against their 401(k) savings?
Yes, Paramount Global allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.
What investment options are available in the Paramount Global 401(k) plan?
The Paramount Global 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
How often can employees at Paramount Global change their 401(k) contribution amount?
Employees at Paramount Global can change their 401(k) contribution amount at any time, typically during open enrollment or through the benefits portal.
Does Paramount Global provide educational resources for employees regarding their 401(k) plan?
Yes, Paramount Global offers educational resources and workshops to help employees understand and manage their 401(k) savings effectively.
What happens to the 401(k) savings if an employee leaves Paramount Global?
If an employee leaves Paramount Global, they have several options for their 401(k) savings, including rolling it over to another retirement account or cashing it out, subject to taxes and penalties.
Is there a vesting schedule for the company match in the Paramount Global 401(k) plan?
Yes, there is a vesting schedule for the company match in the Paramount Global 401(k) plan, which determines when employees fully own the matched funds.
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