Your Security

You want to ensure your retirement security and you need an effective plan for receiving and managing your retirement payout. We will counsel you on your options - whether you are about to retire, simply changing jobs or terminating your employment for some other reason. What you decide to do with your payout will have an important impact on your financial security - currently and in the future.

Your Choice

Upon retirement or departure from your current employment, you will be offered several options as to how your accumulated retirement funds will be paid to you. The effect of taxes on your money must be considered before a decision is made:

• If you elect annuity or installment payments, each payment is generally subject to income tax. Even though your tax liability will be spread over the entire payment period, your money will be taxed at ordinary income tax rates.
  
• If you elect a single (lump-sum) distribution, other tax options may be available to you.
  
• You may choose to avoid current taxes altogether by electing to have your distribution transferred directly to an Individual Retirement Account. Directed transfers are not taxed until they are withdrawn from the IRA.
  
• You may elect to rollover the entire amount into the qualified retirement account of your new employer. If accomplished within 60 days of the date of distribution from your prior employer, no tax liability is incurred.
  
• You can include the entire amount in your gross income for the year. This will most likely result in the highest tax liability.

Several other options are available under IRS rules with varying levels of tax liability. We would be happy to discuss the entire list of options with you.

Your Advantage

A rollover IRA offers another advantage besides tax deferral - it can be very flexible. For example, you may want to keep part of your distribution for that dream vacation you've been planning. The amount you keep will be taxed, but the rollover amount remains tax deferred.

GTRUST staff includes experienced retirement planning professionals qualified to counsel you on withdrawal strategies to meet your goals and minimize tax liability. We also offer a broad array of flexible investment management alternatives. We can help you structure a plan to protect your nest egg and make your retirement financially secure.

Your Future

In addition to rollover and transfer IRA's we offer you the more traditional IRA options to allow you to save for retirement or your children's education:

Traditional IRA - may offer immediate tax benefits. Traditional IRAs offer independence and can be opened and funded without employer participation. Your contributions and earnings accumulate tax-free until retirement. Although annual contributions are limited, they may be tax-deductible.

Roth IRA - features tax-free withdrawals for qualified distributions after a five-year holding period. You fund the Roth IRA with after-tax dollars, but you do not pay taxes on the earnings during the accumulation period or as a part of a qualified distribution.

Coverdell Education IRA - an investment option created for the purpose of helping pay the future cost of a child's higher education. You fund the Education IRA with after-tax dollars for your children until they reach the age of 18. Earnings accumulate tax-free during the investment period, and both contributions and earnings are tax-free when withdrawn to pay for qualified education expenses.

Many investment opportunities are available for an IRA. Mutual funds, stocks, bonds, certificates of deposit, and money market investments are just a few of the options you have with GTRUST.