403(B) & IRA
Strategies to help you manage your assets in retirement.
How can you keep your money working for you in retirement?
yourINCOME PATH™ can help!
Two questions we are often asked include: “Will I run out of money in retirement?” and “How do I make sure I don’t run out of money in retirement?” Member Benefits offers several strategies to help you manage your assets in retirement through yourINCOME PATH.
What is yourINCOME PATH?
yourINCOME PATH is the suite of options and support we offer to help turn your retirement savings account balance into income during retirement. Examples include a range of flexible withdrawal options to meet cash flow needs, required minimum distribution (RMD) support, qualified charitable distributions (QCD), Roth conversion strategies, and more. There are no additional costs for these services.
Why is it important to have an income strategy in retirement?
An income strategy is crucial to keep your money working for you in retirement, even as you start to withdraw from your retirement account(s).
Retirement income strategies aren’t one-size-fits all. We offer several income management options to fit your unique goals and needs during retirement.
Retirement income management strategies
Scheduled payment options can take two different forms.
- Systematic payments allow you to choose the dollar amount and payment frequency (monthly, quarterly, two times per year, or annually) that works best for your situation. The payment date is fixed, processing on the 10th of each month (or closest business day thereafter), and payments continue until your account balance is zero.
- With declining balance payments, our system automatically calculates the number and dollar amount of payments based on your responses to the following questions:
- How long do you need your income to last?
- What frequency of distribution do you want (monthly, quarterly, 2x per year, or annually)?
The payment amount correlates to your account balance and is recalculated at the time of each distribution. With this option, your balance will be zero at the end of the term you select.
We also offer full and partial lump-sum payment options. You can withdraw some or all of your savings as needed. Funds can be distributed via ACH, directly deposited into a savings or checking account, or distributed via a physical check.
Our team can work with account holders to set up an RMD schedule that will automatically recalculate and distribute according to your instructions on file. If an RMD-age participant is taking scheduled payments, our system monitors their cumulative withdrawals compared to their required amount.
Additional payment and income management options
|Required Minimum Distribution (RMD) support||In addition to the RMD schedule you can set up, Member Benefits assists in calculating your RMD and sends you an annual reminder. It’s even printed on your quarterly statement. You can opt for integrating with monthly withdrawals to ensure you meet and don’t exceed the annual RMD amount.|
|Qualified Charitable Distributions (QCDs) support||You can choose to give up to $100,000 to a qualified charity from your IRA without counting it as taxable income when you’re over 70½ years old.|
|Roth IRA conversion support||Transferring retirement assets from a Traditional IRA into a Roth IRA. This is a strategy to reduce taxable income during retirement and is also used in estate planning strategy.|
|Retirement account consolidation||Roll some or all your savings to a 403(b) plan or an IRA (make sure to compare fees and sales charges before consolidating).|
|Federal and state tax withholding elections||IRA withdrawals and conversions allow you to decide how much (if any) withholdings you make upfront to lessen tax liability when filing. 403(b) account withdrawals require withholding a certain % for federal taxes.|
|72(t) distribution options||Last resort distribution option if you need funds before retirement age and do not qualify to take out funds via any other method.|
If you don’t need to use your RMD right now, ask us about a Personal Investment Account (PIA). PIAs provide an opportunity to reinvest the money from your RMD outside of a retirement account.Personal Investment Account
Why Member Benefits?
Member Benefits provides these services at no additional cost.** You have the power to start, stop, or adjust your income at any time. We are focused on the best interests of our participants and provide the benefit of “strength in numbers” through the purchasing power of a large group plan. There are no sales costs or hidden fees associated with any of our investment options.
Our low-cost structure makes our program a great place to consolidate your retirement savings accounts. For example, you can roll over assets from other retirement accounts (such as 401(a)/401(k), 403(b), and Traditional IRA funds) into one, easy-to-manage account (403(b) or IRA).
Helping you become financially secure at every stage in life is our priority. Member Benefits is here to see you to and through retirement.
**If you choose to invest in the WEA Tax Sheltered Annuity or WEA Member Benefits IRA program, fees will apply. Consider all expenses before investing.
How do I figure out my retirement income strategy?
If you already know what strategy you want to use
Give our Member Service Representatives a call at 1-800-279-4030, ext. 8567, and they can get everything set up for you. We do not charge for these services.
Not sure what your next steps are? Need some financial planning tips?
Our financial planners are a great resource if you need more support in defining your strategy. Free and fee-based financial planning services are available. Give us a call 1-800-279-4030, ext. 6730.
Created by educators
WEA Member Benefits
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