Handling Your First Retirement Plan Distribution When Changing Jobs

Tuesday, September 23 at 11:10 AM
Category: Personal Finance

If you have participated in a company retirement plan like a 401(k) plan and change jobs, then you will probably receive a distribution of the funds you have accumulated in your plan. The distributions are often called lump sum distributions. If you have participated for several years, the distribution could be quite substantial. Over the course of your working career, you may receive several lump sum distributions and what you do with those funds and how you handle the distribution is important.

While you may be tempted to just take the money and spend it, remember that there would be income taxes and probably an additional tax penalty. After all, the funds are for your retirement. By avoiding that temptation, you have the opportunity to build your wealth and make a large step forward on your path to a financially secure retirement.

Reviewing Your Options for a Retirement Plan Distribution
Before you officially leave the company, you will probably meet with someone from your Human Resources department to finalize the details of your termination. This will probably include discussing a final paycheck, determining any unused vacation or sick days and your options for taking a distribution of your retirement plan account. It can take 30 to 90 days to finalize the distribution, but there are decisions you must make at that time and when you finally receive the distribution check.

  1. Do you want to pay tax on the distribution now or have it remain tax-deferred?
  2. Do you want to leave your funds with your prior employer's plan, move them to your new employer's plan or transfer them to an IRA?
  3. How do you want the money invested?

If you have been a participant in a plan for a long time and have accumulated a large sum of money, these decisions can have a very large impact on your financial future and that of your family. Considering the decisions carefully is critical. Be sure you fully understand your options and get professional help if you need it.

Pay Taxes or Not
While your funds were within the qualified plan, any earnings were tax deferred. When you receive the distribution, you have 60 days to roll over your funds to your new employer’s plan (if allowed) or into an Individual Retirement Account. If you don’t act within 60 days, your distribution will be subject to regular income taxes and an additional 10 percent early withdrawal penalty tax if your are under the age of 59 ½.  

Unless you absolutely need the money immediately, it is usually advisable to maintain the tax deferral status. When you receive the distribution check and if you plan to move it into an IRA or your new employer’s plan, make sure you do that quickly. If you do not get it deposited within 60 days, you will owe tax on it and a 10 percent penalty.

Where to Keep Your Funds
To maintain tax deferral, the funds must stay in some form of qualified retirement account. Many retirement plans offer the opportunity to leave funds in the plan after employment termination. You may also be eligible to transfer the distribution to a new employer's plan. The third option is to transfer the funds to an IRA. The choice of where to have your money should be based on the amount of investment control you wish. An IRA probably provides the most flexibility, but also forces you to make more decisions. The costs of administration and asset management fees should also be considered.
Even if you are currently unsure of your long-term plans, you may want to have the funds transferred into an IRA. You can always make withdrawals later if you choose.

Investing Your Funds
Your retirement plan distribution may be the largest single sum of money you have received. The investment of those funds should be handled very carefully. Be sure to consider how these funds fit into your overall financial planning efforts.

Be sure to consider your time horizon and risk tolerance when making your investment decisions. If you transfer your distribution to your new employer’s retirement plan, consider the investment options and choose appropriately. If you go the self-directed IRA route, most institutions offer accounts that enable you to choose stocks, bonds, mutual funds, money market funds and other investments.

Don’t feel that you have to make all the investment decisions immediately. As long as the funds are within another qualified plan or IRA, there should be no taxes due and you can make informed and careful investment choices.

Conclusion

Receiving a lump sum distribution is a major financial event. The choices you make will affect your financial security for years to come. Be sure to evaluate all your options, seek guidance if needed and decide wisely. Your future financial security depends on it.

Tags: Financial Education, Retirement
 

Community Services Clearinghouse – Our Partner in Fighting Hunger

Tuesday, September 23 at 06:10 AM
Category: Arvest Community News

For more than 30 years, Community Services Clearinghouse has been operating after beginning as the Mental Health Society. It has morphed into its focus of feeding the hungry through two major programs -- a food pantry and the Meals For Kids backpack program – serving five counties in Arkansas and two in Oklahoma.

Community Services Clearinghouse* distributes nearly 30,000 boxes of food each year. The Reynolds Cancer Support House* is the primary referrer of clients and as long as the organization continues to refer the clients, the clients receive a box of food each week. A second group of clients are those living on a fixed income, and receive food each month. A few clients just stop in sporadically depending on their needs. 

The meals for kids program serves students in 83 schools in the area with nutritious snacks for the weekend to supplement the school food during the week. Community Services Clearinghouse also partners with the Fort Smith, Ark., schools to provide bags in the summer. The program provides nearly 90,000 bags of food per year. All programs serve a specific niche of the population not served by other programs in the area.

The organization has eight paid staff members, 500 regular volunteers in the Meals For Kids program, and nearly 200 weekly and event volunteers. Community Services Clearinghouse serves clients and schools in Sebastian, Crawford, Franklin, Logan and Scott counties in Arkansas, and Sequoyah and LeFlore counties in Oklahoma. There are many volunteer opportunities throughout the year including packing and delivering food sacks, working as a receptionist or pantry volunteer, helping with events and more.

To learn more about Community Services Clearinghouse visit them online* or on Facebook.*
 
To learn more about 1 Million Meals, visit arvest.com/millionmeals.

You can make a donation through any of the following methods:

  • Donate via Phone – Customers can make a $1 (or more) donation by calling (866) 952-9523.
  • Donate via Mail – Mail a check to Arvest Bank Operations, ATTN: 1MM, PO Box 799, Lowell, AR 72745. Include 1 Million Meals in the memo line of the check.
  • Purchase a Paper Can – Purchase a 1 Million Meals paper can for $1 at any Arvest Bank branch. Each paper can purchased funds five meals. Donations of larger amounts also accepted.
  • Drop Off Food Items – All Arvest Bank branch locations will be accepting nonperishable food items. Donated items will be delivered to local food partners for distribution.

Arvest will donate on your behalf if you:

  • “Like” or "Share" a 1 Million Meals post on Arvest’s Facebook page.* Arvest will donate $1 on your behalf for every Facebook "like" or "share," resulting in five more meals toward the overall goal of one million meals.
  • "Follow" Arvest on Pinterest. If you follow Arvest Bank on Pinterest,* then Arvest will donate $1, which equals five meals, on your behalf.
  • "Retweet" our 1 Million Meals tweets from @ArvestBank* on designated promotion days – Sept. 19 and Oct. 10. For every retweet on those days, we’ll donate $1, or five meals, to your neighbors in need.

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: 1 Million Meals, Arkansas, Charitable Giving, Community Support, Fort Smith
 

Arkansas Rice Depot – Our Partner in Fighting Hunger

Tuesday, September 23 at 04:45 AM
Category: Arvest Community News

Arkansas Rice Depot was formed in 1982 with the mission to find sensible solutions to hunger in Arkansas. They fulfill this mission through four programs: Food For Families, Food For Kids, Food For Seniors and Disaster Relief. Arkansas Rice Depot is the only statewide faith-based food bank in Arkansas which serves all 75 counties. Last year, Arkansas Rice Depot programs served 15 percent of the population of Arkansas providing over 9 million pounds of food and supplies. 

Empower. The organization believes the key to ending hunger in Arkansas is found in the Arkansas tradition of neighbors helping their needy neighbors. Through the Food For Families program they provide approximately 9 million pounds of food each year to 300 church and community hunger agencies across Arkansas. Last year they helped feed over 400,000 individuals.

Serve. No senior citizen should receive a life sentence of hunger. The Food For Seniors program enables volunteers to deliver 50 pounds of food and household items monthly to hungry, homebound seniors in Pulaski, Saline, and Faulkner counties. This is Arkansas Rice Depot’s newest program and will gradually serve more counties.

Innovate. Because it’s hard to be hungry for knowledge when you’re just plain hungry, Arkansas Rice Depot started Food For Kids, a food pantry for students in public schools which has been replicated in 40 states across the nation and most recently in Mexico. Each year the organization serves about 35,000 hungry Arkansan children by providing backpacks filled with kid-friendly foods, personal care items and more. The Arkansas Rice Depot currently serves over 600 schools in the state.

Respond. From a house fire that affects one family to a tornado that affects hundreds, Arkansas Rice Depot’s Disaster Relief program immediately activates, providing emergency relief through their food pantry partners, public schools, direct disaster service events, and even door-to-door if necessary. Their emergency relief efforts continue in a community as long as needed.

For more information, visit the Arkansas Rice Depot online,* on Facebook* or on Twitter.*

To learn more about 1 Million Meals, visit arvest.com/millionmeals.

You can make a donation through any of the following methods:

  • Donate via Phone – Customers can make a $1 (or more) donation by calling (866) 952-9523.
  • Donate via Mail – Mail a check to Arvest Bank Operations, ATTN: 1MM, PO Box 799, Lowell, AR 72745. Include 1 Million Meals in the memo line of the check.
  • Purchase a Paper Can – Purchase a 1 Million Meals paper can for $1 at any Arvest Bank branch. Each paper can purchased funds five meals. Donations of larger amounts also accepted.
  • Drop Off Food Items – All Arvest Bank branch locations will be accepting nonperishable food items. Donated items will be delivered to local food partners for distribution.

Arvest will donate on your behalf if you:

  • “Like” or "Share" a 1 Million Meals post on Arvest’s Facebook page.* Arvest will donate $1 on your behalf for every Facebook "like" or "share," resulting in five more meals toward the overall goal of one million meals.
  • "Follow" Arvest on Pinterest. If you follow Arvest Bank on Pinterest,* then Arvest will donate $1, which equals five meals, on your behalf.
  • "Retweet" our 1 Million Meals tweets from @ArvestBank* on designated promotion days – Sept. 19 and Oct. 10. For every retweet on those days, we’ll donate $1, or five meals, to your neighbors in need.

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution. 

Tags: 1 Million Meals, Arkansas, Charitable Giving, Community Support, Fort Smith
 

U.S. Marshals Museum to Break Ground in Fort Smith, Ark.

Monday, September 22 at 12:35 PM
Category: Arvest Community News

The groundbreaking for the U.S. Marshals Museum will take place on Sept. 24 at the intersection of H Street and Riverfront Drive in Fort Smith, Ark. Following the groundbreaking is a community cookout for everyone attending the ceremony. A group of Fort Smith companies will be onsite preparing and serving a wide range of lunch entrées. Supporting companies include Arvest Bank, First National Bank, Bancorp South, Harry Robinson Buick, Golden Corral, OK Foods, Goody’s and the Coca Cola Bottling Company. 

FORT SMITH, Ark. – Ground will be broken on September 24 for the U.S. Marshals Museum in the western Arkansas city chosen as its home because of its storied history with the longstanding law enforcement agency. The groundbreaking launches the first phase of the project, which includes architectural and exhibit design and site preparation.

This date also marks the 225th anniversary of the U.S. Marshals Service, the nation’s oldest federal law enforcement agency. The Service selected Fort Smith in 2007 as the site for the museum because its history is closely linked to the iconic frontier lawmen. The museum will serve as a national center to educate visitors on the past and present roles of the U.S. Marshals Service and inspire visitors with stories of their service and sacrifice since our nation’s founding.

U.S. Senators Mark Pryor and John Boozman, U.S. Congressman Steve Womack, Arkansas Governor Mike Beebe and U.S. Marshals Service Director Stacia Hylton will be on hand for the formal program.  Other dignitaries expected to attend include Principal Chief George Tiger, president of the Inter-Tribal Council of the Five Civilized Tribes; Louis McKinney, president of the U.S. Marshals Service Association; Fort Smith Mayor Sandy Sanders; Judge Jim Spears, chairman of the U.S. Marshals Museum board of directors; and Robert Young, chairman of the U.S. Marshals Museum Foundation. John Farrell of Forfeiture Support Associates, the lead event sponsor, will also be on the program.

Fort Smith’s history is teeming with stories of the U.S. Marshals and their exploits on the American frontier when what is now the Oklahoma state line was the border with Indian Territory. More than 100 marshals are buried within a 50-mile radius, making Fort Smith one of the most revered places in the Service’s long history.

The U.S. Marshals have become part of America’s folklore and imagination. But they are more than the Rooster Cogburns, Sam Gerards and Raylan Givens of America’s real and fictional past. They are part of the day-to-day law enforcement in America, and abroad, and they have played a significant part in American history of the 20th Century as well.

The museum will be designed to educate visitors on the contributions of the marshals and deputy marshals from its founding in 1789 until now.

“The U.S. Marshals are a vital part of our pioneering past,” said Jim Dunn, president and CEO of the U.S. Marshals Museum. “They played a central role in the rule of law as our nation grew to its present borders. But they were also a key in the battle for Civil Rights in the mid-twentieth century, and they currently help keep our citizens safe while working with other law enforcement agencies and other countries to securely extradite and return fugitives to custody.”

Plans for the museum include:

-Three main galleries with 20,000 square feet of exhibition space
-Education areas with exhibits designed for discovery-based learning
-Theater space for films about the U.S. Marshals Service
-Interactive exhibits for all ages
-Incorporation of the area’s scenery, including the Arkansas River, into the museum experience
-The Hall of Honor to memorialize U.S. Marshals killed in the line of duty
-Community meeting space and class areas
-Space for temporary and traveling exhibitions, and
-A museum gift shop

The groundbreaking ceremony sponsors include Forfeiture Support Associates, Corrections Corporation of America, AKAL Security, Inc., First National Bank of Fort Smith and Verizon.

The groundbreaking ceremony will also showcase the United States Marshals Service 225th Anniversary Commemorative Coin Program gold, silver and clad coins. Earlier this summer, the United States Mint unveiled three commemorative coin designs and will make them available for purchase in limited quantities in early 2015. The U.S. Marshals Museum is authorized to receive the first $5 million in surcharges from the sale of the coins. Additional surcharges are authorized to be paid to three other recipient organizations: the National Center for Missing and Exploited Children, the National Law Enforcement Memorial Fund and the Federal Law Enforcement Officers Association.

Tags: Arkansas, Community Support, Fort Smith, Press Release
 

LifeSource – Our Partner in Fighting Hunger

Monday, September 22 at 07:10 AM
Category: Arvest Community News

In 2001 concerned individuals in Northwest Arkansas wanted to serve the underprivileged, socially at-risk, and impoverished families and children struggling with hunger and poverty. LifeSource was born and has grown from a small food closet helping a few people to helping thousands with basic needs and services.

Its mission is to help strengthen the community by providing customized assistance to families in need. LifeSource* maximizes the impact of every donation, helping to strengthen families and build the community. It strives to not only meet their clients’ urgent physical needs (food and clothing) but also to provide hope for a future without poverty and hunger issues.

The organization’s goal is to help diminish the statistics of poverty and hunger within Northwest Arkansas. It strives to reach this goal by providing several programs designed to improve the quality of life for financially at-risk clients. In 2013, LifeSource served more than 55,000 individuals, families and children with the following services: food assistance pantry, senior life Saturdays, kids life programs, community meal outreaches, professional counseling, clothing closet and adult education classes.

To learn more about LifeSource visit them online,* on Facebook* and on Twitter.*
 
To learn more about 1 Million Meals, visit arvest.com/millionmeals.

You can make a donation through any of the following methods:

  • Donate via Phone – Customers can make a $1 (or more) donation by calling (866) 952-9523.
  • Donate via Mail – Mail a check to Arvest Bank Operations, ATTN: 1MM, PO Box 799, Lowell, AR 72745. Include 1 Million Meals in the memo line of the check.
  • Purchase a Paper Can – Purchase a 1 Million Meals paper can for $1 at any Arvest Bank branch. Each paper can purchased funds five meals. Donations of larger amounts also accepted.
  • Drop Off Food Items – All Arvest Bank branch locations will be accepting nonperishable food items. Donated items will be delivered to local food partners for distribution.

Arvest will donate on your behalf if you:

  • “Like” or "Share" a 1 Million Meals post on Arvest’s Facebook page.* Arvest will donate $1 on your behalf for every Facebook "like" or "share," resulting in five more meals toward the overall goal of one million meals.
  • "Follow" Arvest on Pinterest. If you follow Arvest Bank on Pinterest,* then Arvest will donate $1, which equals five meals, on your behalf.
  • "Retweet" our 1 Million Meals tweets from @ArvestBank* on designated promotion days – Sept. 19 and Oct. 10. For every retweet on those days, we’ll donate $1, or five meals, to your neighbors in need.

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: 1 Million Meals, Arkansas, Charitable Giving, Community Support, Fayetteville

Choose one or more categories to subscribe to:




Cancel