1) ROLLOVER TO AN IRA – This will give you the most flexibility in your options for your money – investment options, distribution options, and tax benefit options. We can open a Rollover IRA to move your lump sum pension benefit to with no tax consequences and include in your future retirement planning.
2) ROLLOVER TO ARCH Resources 401K – This option moves your lump sum benefit to your Vanguard 401k account. Typically, account-level fees are cheaper in a 401k, but your investment options are limited and you do not have any professional guidance or advice.
3) INVOLUNTARY TRANSFER TO INSURANCE COMPANY ANNUITY OF ARCH Resources’ CHOOSING – If you DO NOT move your money out of your pension by June 30, 2023, you do not “lose” the money but it goes to into an annuity from an insurance company that Arch Resources chooses. We haven’t heard where this is yet. Annuities typically have higher fees than managed investment accounts as well as surrender charges, which means the insurance company may charge you a fee to withdraw your money if its in the next 3-10 years, even if you are over age 59 1/2.
Book a one-on-one chat with Josh Pierce, Owner of JH Pierce Wealth Management PC and see how we can take the stress of these financial changes off of your shoulders and make your hard earned pension work for you. It’s what we do!