About Ed McFarland Expertise Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Question I recently changed jobs. I was employed by the State of Wy and participated in their retirement program but only for 5 years. I have around $10,000 in their retirement and $7,000 in a deferred savings. I can leave all this as it is but I was thinking I would do better to put it in a rollover IRA. I will never qualify for the States rule of 85 so my retirement benefit would be very small. The rate of return on the deferred savings has been around 3%. I think I could do better elsewhere. Any suggestions? Also, it is my understanding I can do the roll over IRA and this money will still be taxed deferred. Am I correct?
Answer Last one first, yes a rollover from a qualified plan to an IRA still protects the tax defferal.
If you are sure that your parting with the State is forever, then look at your situation and at the alternatives that are available. Talk with an independent financial planner about your particular situation.
An example would be for a person at least five years away from retirement would be a variable annuity, with a 3 or 4 year surrender period and a living benefit called income for life. Do it yourself pension.
