Option #1: Request a direct rollover.

A Rollover IRA or a direct transfer to your new employer's plan is the easiest way to continue the tax-deferred status of your retirement savings. The reason? By directly rolling over your eligible plan distribution, you can:

Avoid current income taxes and any early withdrawal penalty; and keep your money growing tax deferred.

If you choose a direct rollover:

• Your distribution will not be subject to federal income tax in the current year.
• No income tax will be withheld from your distribution.
• Your distribution will be contributed directly to the Rollover IRA of your choice or, if available, your new employer's qualified plan.
  
• Your distribution will be taxed at a later date when you withdraw it from your IRA or from your new employer's plan.
  

How can you avoid paying unnecessary taxes and penalties?

Consider a Northern Funds Rollover IRA or have your savings transferred directly to your new employer's qualified plan

Direct Rollover Advantages

• Your money can continue to grow tax-deferred until withdrawn
• Avoids 20% mandatory withholding tax
• Avoids 10% early withdrawal penalty

Option #2: Receive the distribution in a check made payable to you. 

IRS CIRCULAR 230 NOTICE: This information is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this notice, see northerntrust.com/circular230.