1.21 Retirement Plan Withdrawal Do's and Don'ts

The Resource Center is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center are not affiliated companies. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Distributions from tax-deferred retirement plans are taxed as ordinary income. Employers issuing a check in your name for a lump-sum distribution are required to withhold 20% toward federal income taxes, so you would receive only 80% of the total value. Early distributions are required to withhold 20% toward federal income taxes, so you would receive only 80% of the total value. Early distributions from employer-sponsored retirement plans and traditional IRA sprior to age 59 1/2 may be subject to 10% federal income tax penalty. This is a hypothetical example provided for illustrative purposes only; it does not represent a real-life scenario and should not be construed as advice designed to meet the particular needs of an individual's situation. Information and opinions contained herein that has been obtained from third-party sources is believed to be reliable however accuracy and completeness cannot be guaranteed. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. This content is provided for informational purposes only and is not intended to serve as the basis for financial decisions. 00829804 02/21