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Greetings, Sonnet, and welcome. You asked:

It is invested in a S&P 500 index and a Russel 2000 index fund, and if I transfered it to an IRA it would most likely be invested the same so why move to an IRA after I retire?

Why indeed?

In your case, a distribution taken from the PLAN (i.e., not an IRA) after you have retired from that job in the year you reach age 55 allows you to take a penalty-free distribution at that age from that job's plan. Move a lump sum to an IRA, and you must wait until age 59 1/2 to that unless you use 72t "substantially equal periodic payment" (SEPP) rules. So, why move it if you're satisfied with the plan and desire the flexibility?

As the the author of the piece you quoted, I should point out that it doesn't say you should move the money. Instead, it merely notes that in most cases (such as the one you cite of taking a lump sum), it makes sense to move the distribution to an IRA to avoid the tax hit. In your case, it seems to make sense not to move the money at all.

Regards..Pixy
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