No. of Recommendations: 0
I am 51 now, and I plan to retire at 55. I have a
401(k), a regular IRA, and a defined benefit pension plan that I have an option of taking as an annuity or a lump sum at retirement. I have decided to take the lump sum.

I understand that at retirement I will be able to take a full or partial distribution from my 401(k), pay taxes at ordinary income rate, and roll the rest over to my IRA. However, I don't understand the pension part of it. Is the pension considered part of the
401(k)? Does it fall under the same rules? If I take my pension as a lump sum distribution, can I keep part of it and roll the rest over into my IRA?

What are the pros and cons of keeping part of the
401(k) and pension distribution, instead of rolling it all into my IRA, to cover the 4.5 years between 55 and 59.5, in order to avoid the 72(t) reg? Is this a good strategy?

I found Pub 590 on the IRS website and downloaded it. From that, I think I understand the three methods to take take substantially equal distributions from my IRA in order to avoid the 10% penalty. I also read post #3039. However, neither of these addresses the strategies involved.

Is 72(t) on the web somewhere available for download?


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.