If you’re nearing retirement age, or you’ve already reached it, it’s important to take care of a little "homework," to make sure you get everything coming to you, and that your money continues to work while you reap the well-earned benefits.
- If you have a 401(k) plan or a Thrift Savings Plan (or both), talk with the plan’s administrator about your options. You may be able to:
- Keep your money invested in the 401(k) plan.
- Withdraw funds.
- Roll your money into an Individual Retirement Account (IRA).
- You may also want to talk with a financial planner who can explain the pros and cons of each option. For example:
- If you’re under 59 ½, you cannot take money out of your 401(k) without incurring certain penalties.
- Once you reach 59 ½, you can start withdrawing money without penalty, or you can keep the plan in effect and your employer will likely continue to pay any administrative fees.
- However, once you turn 70 ½, you will be required to roll this money over into an IRA or cash it out.
- If you decide to roll your money into an IRA or cash it out, and want to invest in a high-yield certificate or money market account, talk with a DOCFCU Member Service Representative to get all of the paperwork in order.
- Then set up an online banking account with DOCFCU to keep track of your deposits and interest earned online.
- Or you can use our convenient Audio-Teller Service to do the same thing by phone. You can set up your Audio-Teller account by calling 202-482-1676 (or toll-free at 800-837-2645).
- Finally, if you have any bi-weekly loan payments or transfers attached to payroll deposits, change them to monthly transactions.
- Civil Service, social security and other retirement payments are usually paid monthly, so if your loan payment remains on a bi-weekly schedule, it will be flagged as late.
- One of our loan officers or a Member Service Representative will be happy to help you make arrangements for the change.
- If you have questions about any of these steps, please feel free to stop by one of our offices, or call us at 202-482-4134 (toll free at 888-626-9845).