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Author: lbgh Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19257  
Subject: pension vs lump sum Date: 11/10/2000 7:11 PM
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My husband plans to retire soon. We wonder if he should take a lump sum amt. since we won't need if for 5 years and if we should transfer it into a reg IRA and then into a Roth over a period of years ( A Roth wound generate less income tax in our estate so we would be paying taxes now so that our children won't have to) He works for Qwest and we have no way of knowing how stable the company will be. Does anyone have any ideas about this? Thanks
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5535 of 19257
Subject: Re: pension vs lump sum Date: 11/10/2000 7:18 PM
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My husband plans to retire soon. We wonder if he should take a lump sum amt. since we won't need if for 5 years and
if we should transfer it into a reg IRA and then into a Roth over a period of years ( A Roth wound generate less income
tax in our estate so we would be paying taxes now so that our children won't have to) He works for Qwest and we
have no way of knowing how stable the company will be. Does anyone have any ideas about this? Thanks


How much is the lump sum and what is the pension?

Based on what you said I would take the money:

Do not need for 5 years.
Transfer to Roth to leave to beneficiaries

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Author: L2J Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5549 of 19257
Subject: Re: pension vs lump sum Date: 11/13/2000 6:12 AM
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Hi lbgh, welcome to the Fool!

Does anyone have any ideas about this?

If you should take the lump sum, have the check made out to custodian of IRA account. If check is in your name, amount subject to 20% tax and would be considered early distribution with 10% penalty if husband is not 59.5 yrs or older. Good luck

HaGD, L2J

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Author: sonny36 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5784 of 19257
Subject: Re: pension vs lump sum Date: 12/7/2000 9:52 PM
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Just found your post. Since you said that you didn't need the income now. Rollover to an IRA where you have total control of the investments. If you can find the money to pay the taxes on it, then convert to a Roth sounds real good. You might even think about having more than one Roth, so that you could have different beneficiaries for each Roth. This way you can still control the money right up to the death of your husband. The value of each Roth could be different depending who the designated beneficiary is. Not know all of your information is a little difficult to give you more ideas. It sounds as if you are in good financial situation. If you care to share more information to me at gsitpps@iquest.net I would be glad to give you more ideas.

glenn

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