WelcomeInformationProcessYour Role Sit Back – Relax – Ask Questions – Get Info – ACT! A Guide To Your Distribution Options

WelcomeInformationProcessYour Role What we’ll cover today Options  Choices you have for your money Info  Help in making your decision Action  What you need to do

WelcomeInformationProcessYour Role How to make a great decision First, evaluate your goals  Confirm your retirement goals with significant others When to retire Where to retire What to do in retirement (standard of living)  Answer three simple questions Then, select the best fit for you  Simply match goals to the best choice

WelcomeInformationProcessYour Role Evaluate your goals 1. Do you need to use the money for immediate expenses? Yes No

WelcomeInformationProcessYour Role Evaluate your goals 2. Do you want to defer paying current income taxes and avoid penalties? Yes No

WelcomeInformationProcessYour Role Evaluate your goals 3. Do you want more control and investment choices? Yes No

WelcomeInformationProcessYour Role Select your best fit Immediate expenses Defer taxes & add choice Your retirement savings Goals Best fit Defer taxes Rollover IRA Cash distribution Current plan New employer’s plan

WelcomeInformationProcessYour Role Select your best fit Immediate expenses Your retirement savings Goals Best fit Cash distribution

WelcomeInformationProcessYour Role Taking a cash distribution Pros  Meets your current expense needs  May be eligible to take a partial cash distribution Cons  20% mandatory federal tax withholding  10% early withdrawal penalty (prior to age 59½)  Taxed as ordinary income in year distributed  No more tax-deferred growth

$50,000 Distribution amount $40,000 Less 20% mandatory-$10,000 federal withholding $35,000 Less 10% early withdrawal penalty*-$5,000 $32,500 Less additional ordinary federal-$2,500 income taxes (5%) $29,500 Less state and local income taxes (6%)-$3,000 Consider the costs *For distributions prior to age 59½. This is for illustrative purposes only. Tax withholding assumes a 25% federal tax rate and 6% state and local taxes. Penalties and taxes, other than mandatory withholding, are paid later; they are not taken out of your distribution. Your situation will vary.

Age 55 or over & retiring No penalty Under age 59½, if used for extensive medical bills or disability Penalty may be waived Exceptions to early withdrawal penalty

WelcomeInformationProcessYour Role Select your best fit Immediate expenses Your retirement savings Goals Best fit Defer taxes Cash distribution Current plan

WelcomeInformationProcessYour Role Sticking with the current plan Pros  Potential for tax-deferred growth continues  Retains some of your current plan’s services  Reserves ability to move to a new plan “Potential” Cons  Access to money is based on plan provisions  Inability to make additional contributions Assumes balance of $5,000 or more.

Earning 8% compounded monthly savings after 20 years from a $50,000 distribution $107,284 $50,000 $29,500 $246,340 Changes in tax rates and the tax treatment of earnings may impact results. You should consider your investment horizon and income tax brackets, both current and anticipated, when making an investment decision as these factors may further impact the results. This is for illustrative purposes only and not meant to represent the return of any investment option. Your situation will vary. Taxes are due on the tax-deferred account upon withdrawal. Continue to invest tax-deferred Take cash* Invest in taxable account Investment earnings taxed at 18.75% each year Tax-deferred benefits *Distribution taxed: 25% federal, 10% early withdrawal penalty, 6% state and local.

WelcomeInformationProcessYour Role Select your best fit Immediate expenses Your retirement savings Goals Best fit Defer taxes Cash distribution Current plan New employer’s plan

WelcomeInformationProcessYour Role Moving to a new employer’s plan Pros  Potential for tax-deferred growth continues  Plan may allow loans  Ability to make additional contributions “Potential” Cons  Investments limited to those in new plan  Access to money based on plan provisions Assumes plan accepts rollovers.

WelcomeInformationProcessYour Role Select your best fit Immediate expenses Defer taxes & add choice Your retirement savings Goals Best fit Defer taxes Rollover IRA Cash distribution Current plan New employer’s plan

WelcomeInformationProcessYour Role Rollover IRA Pros  Potential for tax-deferred growth continues  Expand investment options  Control access to your savings  Reserve ability to move to a new employer’s plan Cons  No loans available  Pay annual account fees, if applicable

Direct Rollover IRA Check made payable to new IRA custodian No immediate tax consequences Two-step process  Complete your plan distribution form and select the direct rollover option  Complete an IRA rollover application for the receiving financial institution A direct rollover can be processed at any time *The 60-day rule will apply with an indirect rollover to an IRA.

WelcomeInformationProcessYour Role Frequently asked questions Can I take a partial cash distribution? What if I have an outstanding loan? What about my company stock? Do I need to make a decision right away?  There is no deadline to make a decision with your plan assets, unless: You have an outstanding loan balance Your account balance is less than $5,000 How should I invest?

WelcomeInformationProcessYour Role What do I do now? If you’re taking a cash distribution  Contact your plan provider to initiate a distribution If you’re sticking with your current plan  In most cases, no action is required

WelcomeInformationProcessYour Role What do I do now? If you’re moving to a new employer’s plan  Make sure your new plan accepts rollovers  Contact your current plan provider to initiate a distribution.  Contact your new plan provider to initiate a rollover. If you’re doing a direct rollover to an IRA  Complete your plan distribution form and select the direct rollover option  Complete an IRA rollover application for the receiving financial institution

WelcomeInformationProcessYour Role In summary… Evaluate your goals  Don’t forget the “cost” of distributions Select the best fit  Keep on track for a successful future Make your move  Let us help you every step of the way  No action is required if you decide to leave your balance in the current plan, unless: You have an outstanding loan Your account balance is less than $5,000

Call to request a prospectus, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. T. Rowe Price Investment Services, Inc., Distributor.