Options on Rollovers

When changing jobs or retiring, clients have four basic options to consider when deciding what to do with their retirement account savings. Here's a summary of the pros and cons of each.

Immediate access to a portion of your money

  Cons

	Savings no longer growth tax-deferred
	A 10% early withdrawal penalty generally applies to people under 59 1/2
	Subject to all applicable federal, state, and local taxes
	Without compounded growth, may compromise your wealth in retirement
	Distribution may push you into a higher tax bracket

	Money continues to grow tax-deferred
	Avoid the 10% early withdrawal penalty if you're under 59 1/2
	Little or no paperwork
	Asset allocation strategy remains intact
	May allow you to withdrawal money without penalty under certain circumstances

  Cons

	Plan may place limitations on inactive or retired participants' accounts
	Investment options limited to those offered in the plan
	Withdrawals and distributions are subject to plan provisions
	Company may be acquired and/or change its plan in the future

	Money continues to grow tax-deferred
	Avoid the 10% early withdrawal penalty if you're under 59 1/2
	Additional investment options may be available
	Retirement assets are consolidated
	Control how to access savings
	Flexibility to move IRA rollover assets into a future employer's plan
	Potential to convert assets to a Roth IRA in the future

  Cons

	No immediate access to full amount of account
	Mandatory distributions at 701/2
	Tax-deferral on future earnings of after-tax assets (if applicable) ends - beginning on Jan. 1, 2002, contributions to a qualifies plan may be rolled into an IRA if certain requirements are met

	Money continues to grow tax-deferred
	Avoid the 10% early withdrawal penalty if you're under 591/2
	New plan may allow loans
	Investment option and features may improve compared to old plan
	Retirement assets are consolidated with one provider

  Cons

	New plan may have higher fees than the old plan
	Investment options are limited to those offered in the plan
	Withdrawals and distributions are subject to plan provisions

This report is prepared for general circulation and is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or service. Market prices and other data may be obtained from outside sources and is not warranted as to completeness or accuracy. Any comments, statements and/or recommendations made herein do not necessarily reflect those of First Allied Securities, Inc., its subsidiaries or affiliates, and are subject to change without notice.