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Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Public Service Enterprise Group Incorporated-sponsored plan. You may also gain more investment options than what may have been available in your Public Service Enterprise Group Incorporated-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 Public Service Enterprise Group Incorporated-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 Public Service Enterprise Group Incorporated should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Public Service Enterprise Group Incorporated-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 Public Service Enterprise Group Incorporated-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 Public Service Enterprise Group Incorporated.
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 Public Service Enterprise Group Incorporated offer to its employees?
Public Service Enterprise Group Incorporated offers a 401(k) retirement savings plan to its employees.
How can employees of Public Service Enterprise Group Incorporated enroll in the 401(k) plan?
Employees of Public Service Enterprise Group Incorporated can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
Does Public Service Enterprise Group Incorporated provide matching contributions to the 401(k) plan?
Yes, Public Service Enterprise Group Incorporated offers matching contributions to the 401(k) plan, subject to certain eligibility criteria.
What is the maximum contribution limit for the 401(k) plan at Public Service Enterprise Group Incorporated?
The maximum contribution limit for the 401(k) plan at Public Service Enterprise Group Incorporated aligns with the IRS guidelines, which may change annually.
Can employees of Public Service Enterprise Group Incorporated take loans against their 401(k) savings?
Yes, employees of Public Service Enterprise Group Incorporated may have the option to take loans against their 401(k) savings, subject to specific terms and conditions.
What investment options are available in the 401(k) plan at Public Service Enterprise Group Incorporated?
Public Service Enterprise Group Incorporated offers a variety of investment options in its 401(k) plan, including mutual funds, stocks, and bonds.
How often can employees change their contribution amounts to the 401(k) plan at Public Service Enterprise Group Incorporated?
Employees of Public Service Enterprise Group Incorporated can change their contribution amounts to the 401(k) plan at designated times throughout the year, typically during open enrollment periods.
Is there a vesting schedule for employer contributions in the 401(k) plan at Public Service Enterprise Group Incorporated?
Yes, there is a vesting schedule for employer contributions in the 401(k) plan at Public Service Enterprise Group Incorporated, which determines when employees fully own the employer's contributions.
What happens to the 401(k) savings if an employee leaves Public Service Enterprise Group Incorporated?
If an employee leaves Public Service Enterprise Group Incorporated, they can roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the plan if eligible.
Are there any fees associated with the 401(k) plan at Public Service Enterprise Group Incorporated?
Yes, there may be fees associated with the 401(k) plan at Public Service Enterprise Group Incorporated, which can include administrative fees and investment management fees.
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