CENTRAL STATES INDUSTRIAL SUPPLY, INC. SAVINGS PLAN Rollover Guide

Leaving CENTRAL STATES INDUSTRIAL SUPPLY, INC.? Your 401(k) Rollover Options

When you leave CENTRAL STATES INDUSTRIAL SUPPLY, INC. — whether you are changing jobs, retiring, or being laid off — one of the most important financial decisions you will face is what to do with your CENTRAL STATES INDUSTRIAL SUPPLY, INC. SAVINGS PLAN account. The choice you make can significantly affect your retirement savings, taxes, and investment flexibility for years to come.

You generally have four options. Each has distinct advantages and drawbacks:

Option 1: Roll Over to Your New Employer’s 401(k)

If your new employer offers a 401(k), you can transfer your CENTRAL STATES INDUSTRIAL SUPPLY, INC. SAVINGS PLAN balance directly into it. This keeps everything consolidated in one account. Best when: your new plan has excellent, low-cost investment options. Watch out for: some plans restrict incoming rollovers or have limited investment menus.

Option 2: Roll Over to a Traditional or Roth IRA

Moving your balance to an Individual Retirement Account (IRA) at a brokerage like Fidelity, Schwab, or Vanguard gives you access to virtually unlimited investment choices — individual stocks, ETFs, bonds, and no-load mutual funds. This is the most flexible option and often has the lowest fees. If your account is a Roth 401(k), you would roll into a Roth IRA to maintain tax-free growth.

Key advantage: an IRA typically offers a much broader investment lineup than any 401(k) plan, and you are not locked into the plan’s fund menu. Best when: you want investment freedom or your 401(k) options are limited or expensive.

Option 3: Leave the Money in CENTRAL STATES INDUSTRIAL SUPPLY, INC. SAVINGS PLAN

If CENTRAL STATES INDUSTRIAL SUPPLY, INC. SAVINGS PLAN has exceptional, ultra-low-cost investment options that you cannot replicate in an IRA or your new employer’s plan, it may make sense to keep your balance where it is. However, you will need to track a separate account at a former employer, and you may lose access to certain plan features after separation.

Best when: you are satisfied with the plan’s investment options and costs. Watch out for: small balances (under $5,000) may be automatically rolled out or cashed out by the plan. Check the investment options and match details for this plan before deciding.

Option 4: Cash Out (Not Recommended)

You can withdraw the full balance as cash, but this triggers ordinary income tax on the entire amount plus a 10% early withdrawal penalty if you are under age 59½. For a $50,000 balance in the 22% tax bracket, you could lose over $16,000 to taxes and penalties. This option should generally be a last resort.

Further Reading

• What to Do with Your 401(k) When You Leave Your Current Employer
• Pros and Cons of Rollover from a 401(k) to a Self-Directed IRA