UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: IMP100 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: lump sum pension disbursement Date: 1/13/2006 8:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi all,
I am 55 years old,and am qualified to retire from my company since I have 10+ years with them.

I will receive my pension ~$90,000 - not money from my 401k - in a lump sum this February. The money in the 401k plan will stay invested with Fidelity (our 401k plan manager). I have savings to cover my various bills for ~ 3 months

I will seek employment after retirement, but want to be SURE I have enough money to pay the bills, have a bit of fun, etc. until I find the new job. Worst case (hopefully) would be needing $45,000 prior to getting new job.

Should I take the pension money as a lump sum distribution and open an account with Emigrant Direct using $45,000 and put the remaining $45,000 in a IRA or Roth IRA or CD or something else?

Will there be a tax penalty for taking the lump sum and putting into one of the above instruments?
Thanks, IMP

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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