Results 1 to 3 of 3

Thread: 401K withdrawals, IRA rollover

  1. #1
    Junior Member
    Join Date
    Jun 2005
    Posts
    1

    Default 401K withdrawals, IRA rollover

    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


  2. #2
    Member
    Join Date
    Apr 2005
    Posts
    50

    Default 401K withdrawals, IRA rollover

    In article <11bu53jffrif513@corp.supernews.com>,
    Jim Cate <jimcate@pdq.net> wrote:
    Has anyone reviewed the advantages and disadvantages of keeping a 401kafter retirement and withdrawing the required minimum distributionamounts vs. rolling the funds over to an IRA under circumstances inwhich one is generally pleased with the performance, expense ratio, andinvestment options of the 401K? (More specifically, we have one 401K


    Well, a 401k is harder to seize to satisfy certain legal claims.

    And while this does not apply to you, from what you write, those
    who leave emploment in a year that they are at least age 55, can
    take 401k distributions without penalty, compared to age 59 1/2
    for IRAs.




    and one Government Thrift Savings Account.) I understand that oneadvantage of rolling the funds over to an IRA is that there may be taxadvantages to heirs after my death and that of my wife. However,although I can't predict the future, it does not seem likely that therewill be major tax consequences of that nature. I also have the optionof taking the 10-year withdrawal option, which could provide some taxadvantages.



    Then sit down with a lump sum distribution form 4972 and figure
    out the tax consequences of a 10-year lump sum withdrawal. This
    assumes you were born before 1/2/1936.

    --

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

  3. #3
    Member
    Join Date
    Apr 2005
    Posts
    50

    Default 401K withdrawals, IRA rollover

    In article <11bu53jffrif513@corp.supernews.com>,
    Jim Cate <jimcate@pdq.net> wrote:
    Has anyone reviewed the advantages and disadvantages of keeping a 401kafter retirement and withdrawing the required minimum distributionamounts vs. rolling the funds over to an IRA under circumstances inwhich one is generally pleased with the performance, expense ratio, andinvestment options of the 401K? (More specifically, we have one 401K


    Well, a 401k is harder to seize to satisfy certain legal claims.

    And while this does not apply to you, from what you write, those
    who leave emploment in a year that they are at least age 55, can
    take 401k distributions without penalty, compared to age 59 1/2
    for IRAs.




    and one Government Thrift Savings Account.) I understand that oneadvantage of rolling the funds over to an IRA is that there may be taxadvantages to heirs after my death and that of my wife. However,although I can't predict the future, it does not seem likely that therewill be major tax consequences of that nature. I also have the optionof taking the 10-year withdrawal option, which could provide some taxadvantages.



    Then sit down with a lump sum distribution form 4972 and figure
    out the tax consequences of a 10-year lump sum withdrawal. This
    assumes you were born before 1/2/1936.

    --

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

Similar Threads

  1. 401k vesting
    By stevep in forum Washington Labor Laws
    Replies: 4
    Last Post: 06-24-2005, 02:00 PM
  2. rollover loss and Roth conversion
    By Humpfries in forum General Tax Law
    Replies: 3
    Last Post: 05-14-2005, 05:52 PM
  3. Canadian Citizen reporting taxes on 401k withdrawal
    By Philemon Chose in forum General Tax Law
    Replies: 0
    Last Post: 03-26-2005, 04:16 PM
  4. no 401k
    By confusedinarkansas in forum Wage & Hour Laws - Minimum Wage Laws
    Replies: 3
    Last Post: 03-20-2005, 12:09 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •