UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75781  
Subject: Re: Rollover IRA Date: 1/28/2000 1:09 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
By combining rollover IRA funds with contributions or IRA accounts containing contributions your only loss is the priviledge of moving your IRA funds to a future employers 401K plan. Because most IRAs are much more flexible than 401Ks most people do not find this advantageous, so its a small loss.

Two advantages of 401K to keep in mind: if you leave the employer after age 55, you can begin penalty free distributions from the 401K immediately rather than having to wait until age 59-1/2. (Of course you could also set up an SEPP payout plan from the IRA to accomplish the same thing. Secondly, the 401K can be subsidized by the employer making it lower cost than the IRA.

Otherwise, you may combine your IRA without incurring penalties provided you do it correctly. Best is to arrange direct custodian to custodian transfers. This avoids problems with withholding taxes and potential penatlies on them.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement