ADP Retirement Services Information Portal

What to do if your 401(k) Plan is ending?


 
Consider Your Options

Since your plan has terminated, you need to carefully consider the choices for what to do with the savings in your 401(k) account. Each of the options listed below may have a different effect on your retirement savings.
 

 
 

Ensure that you continue to have control over what happens to your money in this Plan.

To speak with an ADP Retirement Services Representative,1 please call Toll-Free: (877) 706-1996.

 

Take the cash

Cashing out your account may seem like a good idea — at first. However, doing so will subject your savings to federal and possibly state and local income taxes in addition to possible withdrawal penalties. Once you withdraw your retirement savings for use for something other than retirement, it is gone and can be difficult to rebuild.

 

Rollover to another account

Rolling over to another Employer's Retirement Plan (if permitted) allows you to avoid current taxes and penalties and continue to take advantage of tax-deferred growth opportunities.2 Check with your employer to make sure your plan allows this. Some plans have limits.

 

Rollover to an IRA

Rolling over your account balance to an individual Retirement Account offers you the ability to maintain control of your money and keep it invested on a tax-deferred basis, while avoiding potential current taxes and penalties.3

 

Can't I just leave it in the plan?

No, all account balances in the plan must be distributed. If you do not elect one of the distribution options outlined above, your total account balance could be automatically distributed from the plan without your input.4

How do I decide what to do?

We realize you are facing some big decisions about your retirement savings and want you to know we are here to help. Before you make any decisions or you decide not to act and your balance is distributed automatically, we encourage you to speak to an ADP Retirement Services Representative by calling ADP Participant Services.

 
ADP Paticipant Services can provide one-on-one assistance to:
  • Help you understand your options;
  • Guide you through the distribution process;
  • Assist you with any paperwork; and
  • Facilitate whichever transaction you choose.
To speak with an ADP Retirement Services Representative, please call Toll-Free: (877) 706-1996.
 
If you consider Rolling Over to an IRA . . .
 

There are many financial institutions that offer IRAs and you should take the time to review and compare your alternatives. You also are being provided with the option to rollover your 401(k) to American Century Investments® to help make this transition as easy as possible for you.

 

For more information about this option please contact
American Century Investments Toll-Free at 1-877-345-0403
between 9 am and 7 pm EST or visit www.americancentury.com/adp.

 

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1. Licensed representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, LLC, One ADP Blvd., Roseland, NJ; Member FINRA.

2. Lets you consolidate your retirement assets into one tax-deferred account, but your available investment options will be limited to the chosen plan. You must contact your new Plan's Administrator to determine if a rollover into the new 401(k) plan is possible. A waiting period may apply.

3. Your retirement assets remain in a tax-deferred account in one place, but you have access to a wider range of investment options. However, the timing of and your ability to make withdrawals is more limited. There are many financial institutions that offer IRAs and you should take the time to review and compare your alternatives.

4. There will be an additional notice provided prior to account being liquidated indicating it will either BE distributed in cash or rolled over to another institution as designated by the Plan Administrator.

Review the fees and expenses you pay, including any charges associated with transferring your account, to see if rolling over into an IRA or consolidating your accounts could help reduce your costs. Employer-sponsored retirement plans may have features that you may find beneficial such as access to institutional funds, fiduciary-selected investments, and other ERISA protections not afforded other investors. In deciding whether to do a transfer from a retirement plan, be sure to consider whether the asset transfer changes any features or benefits that may be important to you.

Unless otherwise disclosed or agreed to in writing with a client, ADP, LLC and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisor or firm for the provision of advice; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans. Investment options are available through the applicable entity(ies) for each retirement product. Investment options in the “ADP Direct Products” are available through either ADP Broker-Dealer, Inc. (Member FINRA), an affiliate of ADP, LLC, One ADP Blvd, Roseland, NJ (ADP BD) or (in the case of certain investments) ADP, LLC. Only licensed representatives of ADP BD or, in the case of certain products, of a broker-dealer firm that has executed a marketing agreement with ADP, LLC may offer and sell ADP retirement products and services or speak to retirement plan features and/or investment options available in any ADP retirement products. Nothing in these materials is intended to be, nor should be construed as, advice or a recommendation for a particular situation or plan. Registered representatives of ADP Broker-Dealer, Inc. do not offer investment, tax or legal advice to individuals. Please consult with your own advisors for such advice.

ADP and the ADP logo, ADP — A more human resource. are registered trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. © 2017 ADP, LLC. All Rights Reserved.

 
                                                           
Interested in setting up a
401(k) Plan for your organization?
Please call Toll-Free:
1-800-432-401k
Have questions about your
current 401(k) Plan?
Please call Toll-Free:
1-800-695-7526