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Distributions When Changing Jobs or Retiring Retirement savings Strategies
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Introduce speakers—provide brief background to indicate their expertise and why they are presenting—use CFAs if possible.
TERMS OF USE
By using this presentation, you understand and agree to the following:
You understand that T. Rowe Price does not undertake to give investment advice in a fiduciary capacity by making available this presentation and that T. Rowe Price Associates, Inc. and/or its affiliates (“T. Rowe Price”) may receive revenue from products and services made available by T. Rowe Price, including investment management, servicing, or other fees related to making available and/or servicing certain investments on its recordkeeping platform.
To the extent you modify this presentation you will not attribute this presentation to T. Rowe Price through co-branding or otherwise.
To the extent you provide investment recommendations to clients or prospective clients, you will not attribute any such recommendation(s) to T. Rowe Price.
You are responsible for satisfying all applicable regulatory standards relating to this communication’s use by your firm, including all applicable content, approval, recordkeeping, and filing requirements.
Please insert your data/content where indicated and delete these terms of use and various instructions throughout the PPT before using.
Add Rep Name Here

2. TERMS OF USE
By using this presentation, you understand and agree to the following:
You understand that T. Rowe Price does not undertake to give investment advice in a fiduciary capacity by making available this presentation and that T. Rowe Price Associates, Inc. and/or its affiliates (“T. Rowe Price”) may receive revenue from products and services made available by T. Rowe Price, including investment management, servicing, or other fees related to making available and/or servicing certain investments on its recordkeeping platform.
To the extent you modify this presentation you will not attribute this presentation to T. Rowe Price through co-branding or otherwise.
To the extent you provide investment recommendations to clients or prospective clients, you will not attribute any such recommendation(s) to T. Rowe Price.
You are responsible for satisfying all applicable regulatory standards relating to this communication’s use by your firm, including all applicable content, approval, recordkeeping, and filing requirements.
Please insert your data/content where indicated and delete these terms of use and various instructions throughout the PPT before using.

3. This presentation has been prepared by [Add Firm Name Here] for general education and informational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision. Any tax-related discussion contained in this presentation, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this presentation.
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Rep Talking Points:
Read disclaimer, which informs group of what can and can't be discussed during the session

4. What we’ll cover today Distribution Options How We Can Help
Choices you have for your money
Distribution Options
How We Can Help
Take Action
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Rep Talking Points:
Introduce the main premise of the meeting: to discuss distribution options
Explain that the meeting is designed to help participants start the decision-making process

5. What we’ll cover today Distribution Options How We Can Help
[VARIABLE:] Take advantage of a [ADVISOR SERVICE OFFERING]
Get tools and information to help you make informed decisions
Distribution Options
How We Can Help
Take Action
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Rep Talking Points:
Explain at a high level the tools available to them for choosing an option

6. What we’ll cover today Distribution Options How We Can Help
Review what you need to do to carry out your distribution decisions
Distribution Options
How We Can Help
Take Action
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Rep Talking Points:
Explain that the meeting will review the steps participants need to take to carry out their decision

7. your retirement savings
You have four options
your retirement savings
Cash distribution
leave in current plan
New employer’s plan
Rollover IRA
Address current expenses
Defer taxes
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Rep Talking Points:
Ask attendees to think about how they will use the money they've saved: for immediate financial obligations or future income
Explain the two primary choices: to take a cash distribution or to leave the money invested and tax-deferred
Provide a high-level overview of the four distribution options

8. Taking a cash distribution
Advantages
Considerations
Provides access to your retirement plan assets.
Cash to pay unexpected or emergency expenses.
Removes the potential for continued tax-deferred growth of your assets.
Mandatory 20% withholding on the distribution. You may be liable for more when you file your taxes if your income tax rate is higher than 20%.
May be subject to an additional 10% early withdrawal penalty if you are under age 59½ (some exceptions apply).*
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Rep Talking Points:
Explain the advantages and considerations of a cash distribution
*Distributions prior to age 59½ from a retirement plan may be subject to an additional 10% early withdrawal penalty and income taxes. However, if you leave your employer after you turn age 55, you may not be subject to the 10% early withdrawal penalty. There are other limited situations when the 10% early withdrawal penalty may be waived, including, but not limited to, death, permanent disability, and qualified reservist distributions.

9. POTENTIAL EFFECTS OF CASH DISTRIBUTION
Distribution amount
$50,000
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Rep Talking Points:
Provide a detailed explanation of tax withholding on a cash distribution, using the example of a $50,000 distribution
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.

10. POTENTIAL EFFECTS OF CASH DISTRIBUTION
Distribution amount
$40,000
Less 20% mandatory federal withholding -$10,000
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Rep Talking Points:
Explain the 20% mandatory federal tax withholding and its effect on the example $50,000 distribution
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.

11. POTENTIAL EFFECTS OF CASH DISTRIBUTION
Distribution amount
Less 20% mandatory federal withholding -$10,000
$35,000
Less additional 10% early withdrawal penalty* -$5,000
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Rep Talking Points:
Explain the 10% early withdrawal penalty
*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.

12. POTENTIAL EFFECTS OF CASH DISTRIBUTION
Distribution amount
Less 20% mandatory federal withholding -$10,000
Less additional 10% early withdrawal penalty* -$5,000
$32,500
Less additional ordinary federal income taxes (5%) -$2,500
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Rep Talking Points:
Explain tax brackets and how the federal withholding amount might not cover the full amount due based on income and with the 10% penalty
*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.

13. POTENTIAL EFFECTS OF CASH DISTRIBUTION
Distribution amount
Less 20% mandatory federal withholding -$10,000
Less additional 10% early withdrawal penalty* -$5,000
Less additional ordinary federal income taxes (5%) -$2,500
$29,500
Less state and local income taxes (6%) -$3,000
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Rep Talking Points:
Explain the effects of local and state income taxes
Emphasize that each individual's tax situation varies
*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.

14. leave in current plan Advantages Considerations
Offers familiar investment options.
Maintains the tax-advantaged status of your investments.
Generally allows for penalty-free withdrawals if you separate from service in the year that you turn age 55 or older (although your distribution is still subject to income taxes).
May provide access to investments that might not be available outside the plan.
Generally offers unlimited protection from creditors under federal law.
May have a minimum balance requirement of $5,000 to remain in the plan.*
Continues plan withdrawal provisions.
May have limited investment options.
There may be differences in the services offered and in the fees and expenses between your former employer's plan and the new employer's plan.
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Rep Talking Points:
Review the advantages and considerations of deferring savings in the plan
*Depends on employer plan provisions.
There are other important factors to consider when deciding between an employer-sponsored plan and IRA—examples include fees and expenses, available services, and protection from creditors. Please consider consulting with a tax advisor. Assumes any minimum balance requirements are met.

15. Moving to a new employer’s plan
Advantages
Considerations
Maintains the tax-advantaged status of your investments.
May permit loans.*
Generally allows for penalty-free withdrawals if you separate from service in the year you turn age 55 or older (although your distribution is still subject to income taxes).
May provide access to investments that might not be available outside the plan.
Generally offers unlimited protection from creditors under federal law.
Persons still working at age 70½ do not have to take required minimum distributions from their current employer's plan.
Limits investment options to those available in the new plan.
Limits your access to withdrawals.*
May involve a waiting period prior to moving assets from a former employer's plan.*
There may be differences in the services offered and in the fees and expenses between your former employer's plan and the new employer's plan.
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Rep Talking Points:
Review the advantages and considerations of rolling savings to a new employer's plan
*Depends on employer plan provisions.
There are other important factors to consider when deciding between an employer-sponsored plan and IRA—examples include fees and expenses, available services, and protection from creditors. Please consider consulting with a tax advisor. Assumes any minimum balance requirements are met.

16. Rollover IRA Advantages Considerations
Maintains the tax-advantaged status of your investments.
Does not offer loan provisions.
There may be differences in the services offered and in the fees and expenses between your former employer’s plan, your new employer’s plan, and the Rollover IRA.
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Rep Talking Points:
Describe what an individual retirement account is
One way to engage attendees could be this approach:
First, can anyone tell me what “IRA” stands for? You’re right, and Individual Retirement Account. IRAs were designed to help individuals save money for retirement on a tax‐deferred basis—just like in your plan. IRAs are offered by mutual fund companies, banks and brokerage firms.
There are other important factors to consider when deciding between an employer-sponsored plan and IRA—examples include fees and expenses, available services, and protection from creditors. Please consider consulting with a tax advisor.

17. Rollover IRA (cont.) Advantages Considerations
Permits consolidation of retirement plan assets.
Often offers access to a wider range of investment options (versus keeping the assets in an employer-sponsored plan).
Gives the option of taking penalty-free withdrawals after age 59½.
Early distribution penalties may also be waived by the IRS if certain circumstances are met, regardless of age.
These exemptions include, but are not limited to, unreimbursed medical expenses, disability, higher education expenses, and a first-time home purchase.
Allows investors to make withdrawals.
Certain investments may not be available.
Generally, penalty-free withdrawals may not be made until age 59½.
IRA assets are protected in bankruptcy proceedings only.
State laws vary in the protection of assets in lawsuits.
Negative tax consequences of rolling over significantly appreciated employer stock to an IRA.
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Rep Talking Points:
Review the advantages and considerations of a Rollover IRA
There are other important factors to consider when deciding between an employer-sponsored plan and IRA—examples include fees and expenses, available services, and protection from creditors. Please consider consulting with a tax advisor.

18. Potential tax-deferred benefits
taking a PENALIZED distribution versus saving in a tax-deferred account For 20 Years.
Remain tax-deferred
Take cash*
Invest in taxable account
Investment earnings taxed at 18.75% each year
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Rep Talking Points:
Explain the advantages and considerations of deferring savings versus taking a cash distribution. The comparison should be fair and balanced
Describe the 10% tax penalty for early withdrawal
*Distribution from qualified retirement plan has a 31% combined state and federal tax rate and a 10% penalty.
This chart is for illustrative purposes only and should not be considered representative of the returns of any of the investment options in your plan. It assumes a hypothetical 7% return, compounded monthly, on a $50,000 distribution saved for an additional 20-year period. Money in the tax-deferred account is taxed when it is withdrawn. Gains in the taxable account are subject to a capital gains tax rate of 15%; lower maximum tax rates on capital gains and dividends will make the investment return for the taxable account more favorable, thereby reducing the difference in the dollar amounts between the two accounts. Changes in tax rates and the tax treatment of investment earnings may affect comparative results. You should consider your personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision because these factors may further affect the results of the comparison.
Distributions from a retirement plan may be subject to a 10% early withdrawal penalty and income taxes, which are not reflected in these results. However, if you leave your employer after you turn age 55, you may not be subject to the 10% early withdrawal penalty. There are other limited situations when the 10% early withdrawal penalty may be waived, including, but not limited to, permanent disability.

19. Potential tax-deferred benefits
TAKING A NON-PENALIZED DISTRIBUTION VERSUS REMAINING IN A TAX-DEFERRED ACCOUNT For 20 Years.
Remain tax-deferred
Take cash
Invest in taxable account
Investment earnings taxed at 18.75% each year
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Rep Talking Points:
Explain the advantages and considerations of deferring savings versus taking a cash distribution after age 59½ (without the early withdrawal penalty). The comparison should be fair and balanced
This chart is for illustrative purposes only and should not be considered representative of the returns of any of the investment options in your plan. It assumes a hypothetical 7% return, compounded monthly, on a $50,000 distribution saved for an additional 20-year period. Money in the tax-deferred account is taxed when it is withdrawn. Gains in the taxable account are subject to a capital gains tax rate of 15%; lower maximum tax rates on capital gains and dividends will make the investment return for the taxable account more favorable, thereby reducing the difference in the dollar amounts between the two accounts. Changes in tax rates and the tax treatment of investment earnings may affect comparative results. You should consider your personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision because these factors may further affect the results of the comparison.
Distributions from a retirement plan may be subject to a 10% early withdrawal penalty and income taxes, which are not reflected in these results. However, if you leave your employer after you turn age 55, you may not be subject to the 10% early withdrawal penalty. There are other limited situations when the 10% early withdrawal penalty may be waived, including, but not limited to, permanent disability.

20. IRA ROLLOVERS—DIRECT VS. INDIRECT
Direct rOLLOVER
Indirect ROLLOVER
Check made payable to the new IRA custodian/plan trustee
Two-step process
Complete your plan distribution requirements and select the direct rollover option
Complete IRA rollover application for the receiving financial institution
If rolling over to another employer plan, contact the new employer for information on forms, etc.
A direct rollover can be processed at any time
Check made payable to you
Mandatory 20% federal tax withholding
60 days to roll over all or a portion to IRA
Must personally deposit 20% out of pocket if depositing entire balance
Any portion not rolled over, including amounts withheld, is considered a distribution
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Rep Talking Points:
Describe the differences between direct and indirect IRA rollovers, including tax withholding and possible tax consequences

21. What do I do now? If you would like to make a change
Contact [Advisor name here]
If you aren’t ready to make any changes
If you’re still unsure
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Rep Talking Points:
Provide contact information for initiating a distribution

22. What do I do now? If you would like to make a change
Contact T. Rowe Price to initiate a distribution
No action required
Money can remain in the plan
If you aren’t ready to make any changes
If you’re still unsure
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Rep Talking Points:
Explain that money will remain in the account until participants are ready to take action (depending on plan rules about account minimums)
Assumes minimum account balance requirements are met.

23. What do I do now? If you would like to make a change
Contact T. Rowe Price to initiate a distribution
No action required
Money can remain in the plan
Contact [advisor name here]
If you aren’t ready to make any changes
If you’re still unsure
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Rep Talking Points:
Provide contact information for questions
Assumes minimum account balance requirements are met.

24. MONITOR YOUR ACCOUNT ONLINE
Please add in any graphics you think are appropriate, like images of participant websites or account summaries:
Quickly view and access accounts and balances
Perform transactions
Check in on your progress toward retirement
Research investments
Log in wherever you are, whatever your device (if that is true)
Rep Talking Points:
Introduce the website as a resource for monitoring account and calls out key features
Tie key features back to points made in the presentation, for example:
Set-up auto-services via “transactions”
Learn more about investment options via “investments”
Highlight responsiveness of site and promotes mobile adoption
NOTE: Add additional features and benefits of website as appropriate

25. Save enough for retirement. IT’S YOUR FUTURE we’re here to help.
Rep Talking Points:
Emphasize that the more they educate themselves about the plan, the better they can prepare and determine their retirement readiness

26. Save enough for retirement IT’S YOUR FUTURE. we’re here to help.
Rep Talking Points:
Explain that they should start saving now to plan for retirement
Reiterate the importance of prioritizing retirement saving (and working toward the 15% savings goal)

27. Save enough for retirement. IT’S YOUR FUTURE. We’RE HERE TO help
Rep Talking Points:
Encourage participants to reach out with questions

28. Add your logo, telephone number,
/website
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Rep Talking Points:
Provide participants with contact information
Leave this slide on the screen for attendees to write down contact information
C1BEODHJP 2/18

29. TO PLAN SPONSORS This presentation should only be used as a visual presentation for client meetings. This program should not be altered, printed, distributed, or posted for employees to access.
TO WEB MEETING ATTENDEES This web meeting may be recorded and posted for other employees to access. For security reasons, please do not speak or any personal information during this meeting. For example, you should not give your address, Social Security number, or account information during this web meeting.