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On Christmas Day, the New York Stock Exchange and Capital Group’s U.S. offices will be closed.

In observance of the Christmas Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Tuesday, December 24 and will be closed on Wednesday, December 25. On December 24, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)

Move into a new plan vs. Cash out

Move to a new plan

Cash out

Benefits

Your money can continue to grow tax-deferred.

You have your retirement assets conveniently consolidated with one provider.

Benefits

You have cash in hand to take care of current needs.

Keep in mind

The plan may not accept certain types of rollovers from other plans, or Roth or after-tax money.

Make sure the rollover funds go directly from your old plan’s trustee to your new plan’s trustee to avoid having income tax withheld on the taxable portion of your distribution.

There may be a waiting period before you can move your money into your new plan.

Your investment options are limited to what is offered in your new plan.

You’re subject to the rules and restrictions of your new plan.

To roll a retirement plan account from a former employer to a new American Funds plan, you’ll need an Incoming Rollover Requestform, available from the American Funds plan’s representative.

Keep in mind

Money you spend now won’t be there for you later.

Your employer must withhold 20% of the taxable portion of your distribution for federal income taxes. You may owe more at tax time.

A 10% early withdrawal penalty may apply if you’re under age 59-1/2. If you’re 55 or older when you leave your job, withdrawals are penalty-free but still taxable. Other exceptions may apply.

Withdrawals from Roth accounts are tax- and penalty-free if the account was established at least five years before, and if you are at least 59-1/2 years of age, are disabled or have died.

You may owe state and local taxes on the taxable portion of your distribution.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.