In article <f0e5a6c.0401190835.7e1e7e72[at]posting.google.com> , zxcvar
<arouth[at]radiology.umsmed.edu> wrote:

- quote -

In general, I like to avoid paying tax as long as I can. Given
that, I would consider rolling it over into a self-directed IRA,
and then investing in the funds you want within the IRA.

- quote -

In doing this, you have to pay the tax now. Given inflation, future
money is worth less than current money, so it should cost less to do
it in the future. You also lose your tax-deferred growth feature by
doing it now, so that will cost you some of your future gain. Finally,
doing it now will give you a big slug of income, and it might put you
into a higher tax bracket, which will cost you more taxes than you
might otherwise pay by taking it out slowly over a series of years.

Consider the roll-over into an IRA, and take the money out only when
needed, or when absolutely required to do so. That should maximize
your gains and minimize your taxes.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

Greetings! I am soon to be 65 years old in four months. I am changing
my job. What shall I do with my money in 401K plan? I can rollover to
mutual funds like Dreyfus, Fidelity etc. In few years I have to
withdraw again for mandatory withdrawal.

[a] Shall I invest in a money morket fund or bond mutual fund or a
balanced fund? After five or six years I withdraw and pay the taxes
and invest in a balanced mutual Fund

[b] Shall I pay the income taxes now and invest in a Balanced Fund so
that I do not have to bother again in 5 to 6 years.

With thanks.