Retirement questions before you make a move

Changing jobs, approaching retirement or reviewing an old account can raise very different questions. Start by naming yours: understanding an existing plan, comparing income options or deciding whether to move an account.

A product name is not a plan. Write down what you need the money to do, when you may need it and which questions remain unanswered.

An annuity is an insurance contract. Payment timing, investment risk, fees and access to money vary by contract. An IRA is a retirement account with tax rules. These terms describe different things, even when an annuity is held inside an IRA.

• When would payments begin, and how long would they continue?
• What is guaranteed, and by whom?
• What fees and optional benefits would I pay for?
• What happens if I need money earlier than expected?

Early withdrawals can involve surrender charges, taxes or tax penalties. Ask for the complete schedule and conditions in writing.

A direct rollover moves an eligible retirement-plan payment to another eligible plan or IRA. If money is paid to you instead, timing and withholding rules can apply. Not every distribution or destination qualifies, and a Roth conversion can have tax consequences.

Before initiating anything, ask your plan administrator and a qualified tax professional which rules apply to your specific accounts.

1. Access: How much flexibility do I need?
2. Costs: What are the ongoing and exit charges?
3. Risk: Which values can change or lose money?
4. Alternatives: What other options should I compare?
5. Responsibilities: Who will explain the insurance, investment and tax parts?

John can discuss the insurance questions and clarify the scope of services he can provide. Confirm any professional’s relevant licensing before acting. This guide is not a recommendation to buy an annuity or roll over an account.