Test Your Knowledge: Changing Jobs - Wells Fargo Advantage Funds

A rollover IRA is ( ).

A new trick for your dog

An account for proceeds from a qualified retirement plan when you change jobs

Never tax-advantaged

Lacks support in the investment community

You can avoid the mandatory 20 percent withholding on a retirement plan distribution by ( ).

Not telling anyone you are doing it

Putting the account in your child's name

Investing in goverment bonds

Setting up a direct distribution into an IRA rollover or other qualified retirement account

What is the advantage of moving your old retirement plan to your new employer's plan?

You look good to your new employer

You avoid mandatory withholding if done as a direct distribution

It makes your account tax-free

You get to double the interest rate paid by the new plan

Tax rules for the distribution from your former employer's account ( ).

Allow only one indirect rollover every 365 days

Require a 20 percent withholding by your old employer if you don't have a direct distribution set up

May impose a penalty on the account if not re-invested in a new qualified retirement account within 60 days

All of the above

A drawback of leaving your retirement investments with your former employer is ( ).

The plan may limit withdrawals and exchanges between investments

Your former employer may keep your investments

You can only leave your savings in the plan for a limited time

You will receive a lower rate of return

With an indirect distribution of your retirement proceeds, you can recover the mandatory 20 percent withholding ( ).

After five years

When you file your income tax for the year

At retirement

When you start a new job

This Web site is accompanied by current prospectuses for Wells Fargo Advantage Funds^®, an EdVest^SM program description (PDF), and a tomorrow's scholar^® program description (PDF).

For 529 plans, an investor's or a designated beneficiary's home state may offer state tax or other benefits that are only available for investments in that state's qualified tuition program. Please consider this before investing.

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©2010 Wells Fargo Funds Management, LLC. All rights reserved. EdVest and tomorrow's scholar are state-sponsored 529 college savings plans administered by the Wisconsin Office of the State Treasurer. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Managed Account Services, Wells Fargo Advantage Funds, and the EdVest and tomorrow's scholar plans. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds and shares in the 529 plans are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.