Jim Cate wrote:

- quote -

First, remember the advice here is "you gets what you pays
for".

For my civil service clients faced with same situation
(including my wife this very year), I generally advise
rollover into an IRA, if for no other reason, you have more
control, and can time your distributions to your liking,
except of course for the obligatory distributions after 70
1/2.

In one case, I plotted a withdrawal scheme over the next
twenty years, and calculated the amount that could be
withdrawn with no federal tax (state tax unfornately though)
and that amount, not needed, would then be available to
fund a ROTH IRA, granted sufficient other W2 income. In
fact this scenario is on my own horizon well into the
future. (note, Dick! WELL into the future)

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Has anyone reviewed the advantages and disadvantages of
keeping a 401k after retirement and withdrawing the required
minimum distribution amounts vs. rolling the funds over to
an IRA under circumstances in which one is generally pleased
with the performance, expense ratio, and investment options
of the 401K? (More specifically, we have one 401K and one
Government Thrift Savings Account.) I understand that one
advantage of rolling the funds over to an IRA is that there
may be tax advantages to heirs after my death and that of my
wife. However, although I can't predict the future, it does
not seem likely that there will be major tax consequences of
that nature. I also have the option of taking the 10-year
withdrawal option, which could provide some tax advantages.

I understand that there are a number of issues relating to
the particular circumstances, and that they should all be
reviewed in detail with knowledgeable tax and financial
advisors. So far I have met with a financial planner and
obtained a somewhat comprehensive set of recommendations and
also discussed related issues with my broker. However,
although their advice was on a fee-only basis, they seem to
have a bias, and possibly a financial interest, in directing
me toward an IRA, preferably one which they or an associated
firm would manage, and possibly a variable annuity. There
seem to be few completely independent, fee-based financial
advisors, and in particular, few who are knowledgeable about
the pros and cons of the 10-year withdrawal option.
(Meanwhile, I have ordered IRS publications 575 and 590,
which may help.) Suggestions and recommendations for
further sources will be appreciated.

Jim Cate

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >