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Has anyone reviewed the advantages and disadvantages of keeping a 401k
after retirement and withdrawing the required minimum distribution
amounts vs. rolling the funds over to an IRA under circumstances in
which one is generally pleased with the performance, expense ratio, and
investment options of the 401K? (More specifically, we have one 401K
and one Government Thrift Savings Account.) I understand that one
advantage of rolling the funds over to an IRA is that there may be tax
advantages to heirs after my death and that of my wife. However,
although I can't predict the future, it does not seem likely that there
will be major tax consequences of that nature. I also have the option
of taking the 10-year withdrawal option, which could provide some tax
advantages.
I understand that there are a number of issues involved, dependant upon
the particular circumstances, and that they should all be reviewed in
detail with knowledgeable tax and financial advisors. So far I have met
with a financial planner and obtained a somewhat comprehensive set of
recommendations and also discussed related issues with my broker.
However, although their advice was on a fee-only basis, they seem to
have a bias, and possibly a financial interest, in directing me toward
an IRA, preferably one which they or an associated firm would manage,
and possibly a variable annuity. There seem to be few completely
independent, fee-based financial advisors, and in particular, few who
are knowledgeable about the pros and cons of the 10-year withdrawal
option. (Meanwhile, I have ordered IRS publications 575 and 590, which
may help.)
Suggestions and recommendations for further sources will be appreciated.
Jim Cate
after retirement and withdrawing the required minimum distribution
amounts vs. rolling the funds over to an IRA under circumstances in
which one is generally pleased with the performance, expense ratio, and
investment options of the 401K? (More specifically, we have one 401K
and one Government Thrift Savings Account.) I understand that one
advantage of rolling the funds over to an IRA is that there may be tax
advantages to heirs after my death and that of my wife. However,
although I can't predict the future, it does not seem likely that there
will be major tax consequences of that nature. I also have the option
of taking the 10-year withdrawal option, which could provide some tax
advantages.
I understand that there are a number of issues involved, dependant upon
the particular circumstances, and that they should all be reviewed in
detail with knowledgeable tax and financial advisors. So far I have met
with a financial planner and obtained a somewhat comprehensive set of
recommendations and also discussed related issues with my broker.
However, although their advice was on a fee-only basis, they seem to
have a bias, and possibly a financial interest, in directing me toward
an IRA, preferably one which they or an associated firm would manage,
and possibly a variable annuity. There seem to be few completely
independent, fee-based financial advisors, and in particular, few who
are knowledgeable about the pros and cons of the 10-year withdrawal
option. (Meanwhile, I have ordered IRS publications 575 and 590, which
may help.)
Suggestions and recommendations for further sources will be appreciated.
Jim Cate
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