Hughes Financial Services, LLC
Managing Partner & Financial Advisor
Scott Hughes has worked as a Financial Advisor since 1994. His vision of creating a company dedicated to providing an objective investment and financial planning experience was realized in 2009 when he and his partner, Paul Hughes, founded HUGHES FINANCIAL SERVICES, LLC.
Being independent means Scott is able to seek out the best tools, resources and strategies to help his clients work towards the goals that are most important to them. By partnering with individuals and families in or nearing retirement, he is able to offer his clients strategic plans to help build, manage and distribute their wealth. Scott specializes in all aspects of financial planning including Investment Management, Retirement Income Analysis, Evaluation, Planning and Management, Pension Distribution Planning, Portfolio Design and Management, Family Wealth Planning, Estate Planning, Tax Reduction Planning and Social Security Planning.
For over 20 years, Scott has worked with employees and retirees from various local municipal governments, educational systems and not-for-profits including from 1994-1999: Retirement Plan Specialist, VALIC – assisted Fairfax County Public Schools and Loudoun County Public Schools educators with retirement plans, 1999-2002: Retirement Plan Advisor, VALIC – worked with Fairfax County government employees in planning for retirement and navigating their Deferred Compensation choices, 2002-2009: Financial Planning Advisor, VALIC – provided pre-retirees and retirees with comprehensive financial planning services and wealth management, and 2009-Present: Managing Partner / Financial Advisor, Hughes Financial Services, LLC – working with individuals and families in or nearing retirement to provide solutions that help build, manage and distribute their wealth.
A graduate of George Mason University (Fairfax, VA) with a Bachelors of Science in Public Administration and a Masters of Business Administration degree, Scott also earned his CFP®(Certified Financial Planner) from The College of Financial Planning (Denver, CO) in 1999. He is a member of the Financial Planning Association (FPA) and holds the FINRA Series 6 and 7 registrations as well as licenses in Life, Health and Annuities.
Scott and his wife, Melissa, live in Northern Virginia and have three children who keep them very busy with all of their school, sports and social activities.
BS, Public Administration, George Mason University
Certified Financial Planner, College of Financial Planning
MBA, George Mason University
Assets Under Management:
Hughes Financial Services, LLC, is an independent Registered Investment Advisor located in Herndon, Virginia.
Congratulations on your upcoming retirement!
There are different kinds of 457 plans. If you work for a state or local government, you may be referring to the more common 457(b) Deferred Compensation plan. Distributions from this type of plan are taxed as regular income.
If you were to withdraw $50,000 from your 457(b) plan, the IRS would add that income to your total income for the year to determine what your taxable income is and subsequently, the actual taxes due. The custodian of the 457(b) plan will withhold taxes for federal and if applicable, state taxes, based on your instructions (e.g., 20% Federal, 4% State). Keep in mind that a large distribution in this amount could push you into a higher tax bracket and/or have an impact on any itemized deductions or personal exemptions. You may want to contact your tax professional before making any final decisions.
457(b) plans are unique in the retirement plan world in that the 10% tax penalty for early distributions does not apply. Reaching a certain age is not one of the criteria needed to access these funds. Separation from service via retirement or leaving an employer are the main criteria that will allow you access to the funds. Based on that you will be retiring, you will have access without penalty.
However, the bigger question is: what are your immediate plans for these funds? Do you really need to withdraw in full the funds slated for your retirement? Is it possible you may need these savings for other expenses throughout your retirement?
You can usually maintain these funds in the existing plan and take partial distributions as needed. Or, you may also rollover the funds to a new employer plan or to a self-directed Individual Retirement Account (IRA).
Good luck and enjoy your retirement!
Congratulations on your retirement! There are three parties to consider with this question: the IRS, your former employer and you.
The IRS does not require that you rollover your 401(k). But, IRS does require that your Required Minimum Distribution be satisified prior to rolling the funds over if you decide to do so.
Your former employer may allow you to keep the 401(k) indefinitely or to roll it over in a certain time frame. It is more commont that you are allowed to maintain the account, but you should check with the Human Resources Dept or the current custoidan. The employers guidance will not be dependent on your age more how long it has been since you were employed.
Finally and most importatnly, there is your preferences. Are you happy with the plan, the choices, and the costs? Do you prefer a self-directed IRA that can allow for more investment options? Would you prefer to work with a professional?