Skip to main content
No. of Recommendations: 0
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 john

For 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
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!
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.
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.