What do I do when I retire?
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.
- 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 202-808-3600 (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 202-808-3600 (toll free at 888-626-9845).