Generally, you have four options for handling your retirement account once you terminate employment:
- Leave your account in your former employer's plan (if your account balance is greater than $5,000).
- Rollover your account into your new employer's retirement plan (if allowed by your new employer’s plan).
- Rollover your account to an Individual Retirement Account (IRA) at a qualified financial institution, including Charles Schwab Trust Bank.
- Cash out your account and not “rollover” your account into a new employer plan or an IRA. If you “cash out”, your account generally will be subject to applicable taxes and early withdrawal penalties.
To begin the distribution process, log into your account at Jocelyn Pension Consulting, go to “Loans & Distributions”, and follow the step-by-step process under “Termination Distribution”.
NOTE: Please read the required Special Tax Notice Regarding Plan Payments located under the “Forms and Reports” menu. This notice discloses the tax implications of each method of distribution. We encourage you to start to take steps to process your distribution from the Plan; however, you should talk to your financial advisor or tax advisor about the impact of each distribution option from the Plan.
If you prefer to complete this process by paper, you can fill out a paper distribution form by logging into your account, completing the “Distribution Election Form” located under the “Forms and Reports” menu, and sending it back to us at email@example.com (note: electronic signatures are not allowed).
If you have an outstanding loan balance, your loan becomes due and payable in full immediately. If you do not repay the entire outstanding loan balance, your vested account balance will be reduced by the remaining outstanding balance of the loan. You can download the Loan Payoff Form by accessing the Plan's website at Jocelyn Pension Consulting and choosing the "Forms & Reports" dropdown menu and then "Forms".