Subject: Retirement Date: 9/1/99 5:38 PM Author: JRL Number: of 13612 02/01/2000 I will be retireing.I have a 401k,company penson,& company stock.Is it beter to roll them over into 3 ira's or all into 1 ira at one broker.It is going to be quite a bit after 30 years of work.The only thing I have seen on this is not to add to another ira that has paid taxes in it. thanks johnFor some reason you don't see this either, particularly from the IRA funds, even though our congress passed these laws to get you interested in a pension 30 years ago. One of the best features of it expires on 12/31/99 but there is still plenty to take advantage of. DON'T roll them into an IRA until you have looked at the possible tax advantages of multiple Lump Sum Distributions. Yes, multiple, and don't let anyone tell you you have to put them all together into one Distribution. You can get each or any of these accounts out for between 11% and 25% and structure the liberated funds to be almost as tax free as a Roth. There are too many factors depending on your age (at least 59 1/2) length of service (over 25 years will reduce the taxes somewhat, possibly), amount in each plan (the smaller the better), whether you have exercised your ESOP, and your income tax bracket, etc. to discuss without a lot more information on you. Prepaying the taxes, per se, is NOT a disadvantage, although painful to consider. This works even better if you are in the Federal Estate Tax Catagory (single over $650K or married over $1.3Mil, or expect to be when you both leave us), and/or don't need these funds to generate taxable income for your retirement income. This is not for everyone, but under the right circumstances it can be a tremendous advantage. Ed
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