If you want financial flexibility and control, the opportunity to work with a professional financial advisor, and the simplicity of keeping your retirement savings in one place, consider an Individual Retirement Account (IRA).

When you leave INPRS-covered employment or reach retirement and have a Defined Contribution (DC) balance, you face an important decision about what to do with it.

If eligible for DC distribution, you can roll over any portion of your DC up to 100% into a qualified retirement plan or IRA. If you’re switching jobs and your new employer offers a qualified retirement plan, contact the plan’s administrator for more information. If you’re exploring your DC distribution options and want to know more about IRAs, start by learning about some benefits and key topics.

Why Choose an IRA? Four Key Benefits

1. Keep Everything in One Place

Have retirement accounts scattered across different jobs? An IRA lets you combine them all. This makes your finances much easier to track. No more juggling multiple statements and passwords.

2. Get Professional Help

IRAs give you access to financial advisors who can guide your investment choices. Many workplace plans don’t offer this personal touch. A qualified advisor helps you make smart decisions based on your specific goals.

3. More Investment Options

An IRA gives you thousands of investment options, allowing you to build a more personalized portfolio and to adjust investments if needed. You may be able to invest in:

• Mutual funds
• ETFs (exchange-traded funds)
• Individual stocks
• Bonds
• Alternative investments

4. Tax Advantages

IRAs offer two tax strategies:

• Traditional IRA: Your money grows tax-free now. You pay taxes when you withdraw in retirement.
• Roth IRA: You pay taxes now. Your money grows tax-free, and withdrawals are tax-free in retirement.

Before You Roll Over, Talk to an Expert

Don’t make this decision alone. A financial advisor can help you understand the types of IRAs available, as well as these important topics:

Required Minimum Distributions (RMDs)

A financial advisor can help you stay updated with current RMD laws to ensure that you remain compliant when required to take distributions from an IRA.

Your Investment Strategy

Work with an advisor to choose investments that match your comfort level with risk. They’ll help you coordinate your IRA with other retirement accounts you may have.

The Costs

IRAs come with fees. These may include:

• Annual account fees
• Investment costs
• Trading fees
• Advisor fees

The Tax Impact

An advisor can explain how an IRA will impact your taxes and what you can expect to pay.

The decision to roll over your retirement funds depends on your unique financial goals.

You are not required to choose a rollover for your DC distribution. If you’re interested, please research financial institutions that offer IRAs – INPRS does not offer IRAs.

For more information about rollovers, see section 6.4 of the PERF Hybrid Plan Member Handbook or TRF Hybrid Plan Member Handbook, or section 6.2 of the PERF My Choice Plan Member Handbook (click here for state/click here for local) or TRF My Choice Plan Member Handbook.