| Subject | Date Asked |
|
| erisa defined benefit plan | 11/11/2009 |
Q: Is there a prohibition against the plan beneficiary paying cost of maintenance for the plan and then ...
A: If I understand your question correctly, for those plans with which I am familiar, administration ...
|
| IRA's | 11/9/2009 |
Q: I am 26, and thinking about opening an IRA. Do I just go to any of my local banks? I plan to do a ...
A: I commend you for thinking long-term. By starting now you gain the advantage of compounding interest ...
|
| Early Retirement | 11/6/2009 |
Q: My sister is 63 and looking ahead to plan for an early retirement. She is not sure who to talk to ...
A: The short answer is me. For the record, I am now licensed in seven states. The most recent is ...
|
| Conveting MPP to 401(k) | 10/29/2009 |
Q: Are there any tax penalties for converting from an Money Pension Purchase to a 401(k) for an S corp ...
A: It appears that you may have been asking the wrong questions. If you mean a Money Purchase Plan, ...
|
| Conveting MPP to 401(k) | 10/27/2009 |
Q: Are there any tax penalties for converting from an Money Pension Purchase to a 401(k) for an S corp ...
A: Can you give me more information? What do you mean by Money Pension Purchase? What is your ...
|
| 401K | 10/22/2009 |
Q: I am 55 years old. I was laid off almost 1 year ago, I left my 401K intact $200,000,00. What is the ...
A: On the basis of no current income, I suggest that you have two IRAs. Specifically, $50,000 in a ...
|
| 401K | 10/22/2009 |
Q: I am 55 years old. I was laid off almost 1 year ago, I left my 401K intact $200,000,00. What is the ...
A: You most certainly should transfer your funds to an IRA. As to which IRA or IRAs, I need more ...
|
| 401K withdrawals | 10/21/2009 |
Q: My husband has a 401K plan that we need to make withdrawals from or close out. He was diagnosed ...
A: At one time a person could "retire" at 55 and get 401(k) distributions penalty-free. I wanted to see ...
|
| 401K Loan Default Error | 10/13/2009 |
Q: ILLINOIS -- I was downsized in early June 2009 with an outstanding 401K loan balance of $7,600. On ...
A: I'm not a lawyer, but it looks like you might have to sue the persons that told you that you had ...
|
| Rollover to Roth IRA | 10/11/2009 |
Q: What would be the procedure to cash in whole life insurance policy & rollover to Roth IRA?
A: What you have described are two separate actions. Roth IRAs, just as traditional IRAs, require ...
|
| should we get married? | 10/6/2009 |
Q: We are domestic partners in California. Next year we will both be receiving social security as our ...
A: As an unmarried individual your partner would only have his $800 per month should you pass away ...
|
| husband turned 70 in october of 2008 | 9/30/2009 |
Q: My husband turned seventy in October of 2008, I think his first distributions on his IRA would have ...
A: The rule is the first distribution must be no later than the calendar year following the year that ...
|
| husband turned 70 in october of 2008 | 9/30/2009 |
Q: My husband turned seventy in October of 2008, I think his first distributions on his IRA would have ...
A: It looks like you have until April 2010 to start the withdrawals. But if this conforms to previous ...
|
| Full Withdrawal of IRA at 87 years old | 9/28/2009 |
Q: I am in the process of transferring my mom's IRA into her checking account to help pay for her care. ...
A: Her age has no influence on the tax status of her IRA. I believe that you might be wise to move only ...
|
| early retirement 72t | 9/7/2009 |
Q: I am 50. been with a company 23 yrs. I have 218,000 in 401k, 90,000 in iras/roth and 50,000 cash... ...
A: Chris, The 72(t) distribution on $85,000 for September 2009 ranges from $3,825 to $4,125 per year ...
|
| early retirement 72t | 9/6/2009 |
Q: I am 50. been with a company 23 yrs. I have 218,000 in 401k, 90,000 in iras/roth and 50,000 cash... ...
A: If you can move your 401(k) into a traditional IRA, that plus the the current traditional IRA would ...
|
| 401K Rollover | 9/2/2009 |
Q: From an earlier post, I stated I was looking into doing a direct roll over with my 401K into a ...
A: I don't know how this will help you with the 401(k) loan, since it appears to me to already be ...
|
| IRS withdrawl | 8/30/2009 |
Q: I am 62 years old and would like to retire soon but can't afford to live on my SS and health issues ...
A: Since you are over 59 1/2 the only government related cost to you to take out $50,000 from your IRA ...
|
| 401 (k) loans | 8/28/2009 |
Q: I have two 401 (k) accounts and two years ago borrowed from the second account to pay off some other ...
A: Unless you are over the age of 59 1/2, pulling money out of the other account to pay off the loan ...
|
| lump-sum pension payout | 8/27/2009 |
Q: I am about to take early retirement from my job and was wondering if rolling my lump-sum pension ...
A: When it comes to predicting which investments will perform best, the one thing we know for sure is ...
|
| how much of an ira should be in cash | 8/27/2009 |
Q: When the market fell, my husband's IRA dropped over a third in value. We are both over 65 and there ...
A: This is a second attempt to answer your question. The first time, for some unexpainable reason, the ...
|
| early retirement | 8/15/2009 |
Q: Brumbaugh, I am asking a question for my mother, who is wanting to retire a few months early.. She ...
A: If you are talking about her Social Security income, her full retirement age is 66. For each month ...
|
| 401k partial withdrawal | 8/11/2009 |
Q: I recently quit my job. I would like to do a partial rollover of my account into an IRA. I would ...
A: First, it is very important that you do a complete transfer of your 401(k) into an IRA. To do ...
|
| 401k withdrawal-IRA | 8/5/2009 |
Q: My husband, age 52 has been unemployed for 8 mos.Was layed off due to the economy after 2o yrs. He ...
A: If your husband were to cash out his 401(k), his former employer would be required to withhold 20% ...
|
| Declare Bankruptcy on my 401k | 7/31/2009 |
Q: I'm about to apply for bankruptcy and the only way I will be able to survive is if I declare ...
A: Not being a lawyer, I cannot directly answer that question. However, assuming that you can, you will ...
|
| Cashing-out Military Reserve Retirement | 7/29/2009 |
Q: Brumbaugh, I just completed 20 years of service in the US Air Force Reserve and have received my ...
A: I thank you for the extreme compliment demonstrated by your expectation that I could help you. I ...
|
| 403b | 7/26/2009 |
Q: I have 70,000 in my 403b and have lost 18000 over the past two years. I am 62 years old and work 4 ...
A: Transferring funds to a Roth IRA does generate taxes. However, I don't think that that is the ...
|
| 401(a) Roth money purchase plan? | 7/21/2009 |
Q: Our nonprofit has a 401(a) money purchase plan (MPPP) which receives employer contributions ...
A: Michael, MoneyManager.com says that the 401(a) is compatible with Roth IRAs. See below: Employer ...
|
| 401(a) Roth money purchase plan? | 7/20/2009 |
Q: Our nonprofit has a 401(a) money purchase plan (MPPP) which receives employer contributions ...
A: I am not familiar with 401(a) rules. However there should be nothing to prevent your organization ...
|
| Retirement 401K | 7/18/2009 |
Q: Is there a time limit for me to roll-over my 401K to another type of account after my retirement? ...
A: My last response, which was to your July 17th query, was quite involved. I had ten questions that ...
|
| SPD Prevents Rollover | 7/18/2009 |
Q: I have contacted you previously.I am 60 years old and want to rollover my high fee Symetra 403(b) ...
A: It appears that your HR may have it backwards. I have talked to the IRS, and they don't care whether ...
|
| Retirement 401K | 7/18/2009 |
Q: Is there a time limit for me to roll-over my 401K to another type of account after my retirement? ...
A: It is time for more in depth information. 1. What is your wife's birthday? 2. Are each of you in ...
|
| Retirement 401K | 7/16/2009 |
Q: Is there a time limit for me to roll-over my 401K to another type of account after my retirement? ...
A: I have several companies that offer good products. Some policy types emphasize income, while others ...
|
| Retirement 401K | 7/16/2009 |
Q: Is there a time limit for me to roll-over my 401K to another type of account after my retirement?
A: If there is, I am not aware of it. As a basic rule, I always recommend getting the 401(k) funds ...
|
| 401K disbursements | 7/3/2009 |
Q: I am 62 and my real income has been declining over the past few year due stagnant wages and the ...
A: I cannot answer the question, since it would require me to read their minds. However, I can guess ...
|
| 401K to but a house? | 7/2/2009 |
Q: If you don't own a house but are retired, can you withdraw the price of the house from your 401K ...
A: If you are retired, you should not even have a 401(k). It is my opinion that those funds should be ...
|
| 403 (b) Withdrawals | 6/28/2009 |
Q: I am 60. I am told I can withdraw funds from my 403(b) plan but only those that came from salary ...
A: There are two reasons to the clause "transfer of all 401(k) funds into self-directed IRAs." The ...
|
| 403 (b) Withdrawals | 6/28/2009 |
Q: I am 60. I am told I can withdraw funds from my 403(b) plan but only those that came from salary ...
A: The first of this year, as far as I understand it, 403(b)s are required to conform to 401(k) rules. ...
|
| 401k help | 6/14/2009 |
Q: I refinanced my Michigan home in April 2008 and I took a buyout from Chrysler in Oct. 2008 (14yrs). ...
A: I don't blame you for wanting to get out. However, I think that you may want to re-think your desire ...
|
| Retirement planning | 6/10/2009 |
Q: ..I love this website! I live in DC and will be moving to a job making $144K per year. My current ...
A: 1. Publication 590 says that you can roll the 401(k) into a traditional IRA. Nothing I read states ...
|
| Retirement planning | 6/9/2009 |
Q: ..I love this website! I live in DC and will be moving to a job making $144K per year. My current ...
A: You need to transfer directly from your 401(k) into a "pour-over" IRA. This would be different from ...
|
| ira question | 6/9/2009 |
Q: I am 27 years old and am self employed. I want to start planning for retirement, is now a good time ...
A: If you were to look at what banks are calling "high yield" these days, you would be shocked. For ...
|
| Life Insurance | 6/8/2009 |
Q: I am 43 and my wife 38 both working. My fin & insurance agent advising me to buy Whole life (for me ...
A: As far as your advisor has gone, he has given you good information. Here are some of the reasons ...
|
| Annuities & Roth IRA | 6/8/2009 |
Q: I am 43 and my wife 38. My fin & insurance agent advising me to rollover my 401k about (200K) into ...
A: I have reason to believe that your agent did not clearly explain which was a Fixed Annuity and which ...
|
| 401k withdrawl/partial rollover | 6/3/2009 |
Q: I have just recently quit my job(to return to school full time) and have a 401k worth approx 12000. ...
A: Since it is your intention to use the withdrawals to pay for educational expenses, I would advise ...
|
| IRA Rollover Error | 5/27/2009 |
Q: 9/11/08 I had an IRA mature, received the distribution and rolled it over to what I believed to be ...
A: This is technically a tax-preparer question. But I can give you my opinion. If the IRS has told you ...
|
| Traditional IRA disbursement question | 5/23/2009 |
Q: I will be 59 1/2 on July 15th of this year. I would like to have the interest from my IRA accts (not ...
A: I understand exactly what you have in mind. You want to retain the principal while drawing the ...
|
| Roth IRA | 5/23/2009 |
Q: I have a question about investing in a Roth IRA. I'm 28 and I was told that I can only contribute up ...
A: Good for you for considering Roth IRAs. Under current law all IRA maximums are increased by $1,000 ...
|
| IRA | 5/20/2009 |
Q: My grand daughter is 2 yrs. old and I want to set up a IRA for her. What would be the safest to ...
A: Unless your grand daughter is actively engaged in employment, she is not eligible for an IRA. ...
|
| deceased fathers 401k | 5/14/2009 |
Q: how do i found out if my deceased father has a 401k account somewhere
A: If your father had a 401(k), his employer would have a record of it. If he had transferred it to an ...
|
| IRA withdrawal | 5/9/2009 |
Q: I am almost 60 and was asked to retire. I have put my 401K in an IRA rollover. Now I want to take ...
A: If you are closer to 60 than 59 you have only the income tax to pay on whatever you withdraw from ...
|
| My IRA Account number | 4/21/2009 |
Q: I opened an IRA account about 12 years ago in Michigan. Since then I have moved around, from ...
A: Is it possible that your IRA was not a bank product? Banks have been offering annuities and mutual ...
|
| IRS Denial of Spouse 401K Contributions | 4/4/2009 |
Q: Both myself and my wife contribute to our own traditional 401K plans. We both work and have had our ...
A: I do not know why your wife was prevented from making a contribution to her 401(k). This action ...
|
| Simple Plan | 3/31/2009 |
Q: I was 59 in Nov. 2008, Will be 59 1/2 on May 8th. I withdrew funds from employer Simple Plan...what ...
A: I am not familiar with the term "PIM IRA". However, as a general rule, annuities have a surrender ...
|
| 401K | 3/30/2009 |
Q: I'm 57 1/2, just lost my job and I need to do something with my 401K. I'm told a rollover IRA is ...
A: What you have been told is true. Even more, if you so choose, once the funds are in the IRA you can ...
|
| Retiremnt Loan Defaut | 3/30/2009 |
Q: I recently found out that my agency defaulted on my retirement loan that I took out in February ...
A: Neal, I don't understand why you had to report the loan as income. You paid off the loan well ...
|
| 403(b) and IRA | 3/30/2009 |
Q: I currently contribute to my employers 403(b) plan. I was thinking of opening up a Traditional IRA, ...
A: Your intentions and current activity could be working you into a financial trap. The number one ...
|
| withdrawal of 401K | 3/28/2009 |
Q: My husband is 58 years old (won't be 59 till Dec if that makes a difference), is on SSI and VA ...
A: In order to avoid a 20% withholding, you need to transfer the 401(k) directly to a "pour-over" IRA. ...
|
| Husband's Pending Layoff and Retire at 55 | 3/19/2009 |
Q: My husband has an IRA from previous job and also a small 401K at his current employer. He may be ...
A: Under Section 72(t) of the Internal Revenue Code periodic distributions that are based on current ...
|
| expenses on distribution | 3/19/2009 |
Q: I work for a TPA and a client has a terminating employee who has a small balance in their Profit ...
A: It seems that the event that would cause the fee is a distribution that is requested by the ...
|
| Pension and IRA | 3/17/2009 |
Q: Greetings I am trying to determine if my wife and I must pay taxes on a small pension ...
A: It is my understanding that her pension income is not considered earned income for IRA purposes. ...
|
| IRA account or 401k account | 3/16/2009 |
Q: My husband just recently found out he has a 401k or ira account, but no one can tell him where it ...
A: The answer must begin with how he found out that he has the retirement account. The one who said he ...
|
| Employer Match and IRA | 3/14/2009 |
Q: I am new to the 401K and IRA world. I am working for a small company with only 2 employees (Me and ...
A: In my opinion your company is going the wrong direction. In a way you have benefited by the money ...
|
| Roth IRA | 3/9/2009 |
Q: I'm 47, and I have a Roth IRA I opened long ago, when I was working for a company that didn't have ...
A: If you mean that your combined income is no more than $140,000, you are well under the threshold ...
|
| Roth IRA excess contributions | 3/8/2009 |
Q: My son, Mike, contributed $4000 to his Roth IRA. Because of his income level, he has exceeded his ...
A: It looks like your son will be subject to a $120 penalty. I have never seen this scenario before. I ...
|
| Roth IRA Investment Options | 3/6/2009 |
Q: I currently set aside 10% of my salary into my employer's SAR-SEP plan, but the company doesn't ...
A: It appears that you have been trying hard to build a good retirement income. Unless you are very ...
|
| IRA | 3/3/2009 |
Q: I'm planning on retiring in 4 years. I owe $5000 on my car. Should I pay off my car or purchase a ...
A: That depends on the interest rate of your auto loan, what kind of Roth IRA you have in mind, how old ...
|
| 401K and Life Insurance Passing to Beneficiaries | 3/2/2009 |
Q: My brother died divorced and without a will. I was told that his 401K and life insurance named his ...
A: Not knowing the laws of the state you are in, I can only make comment as to what these would be for ...
|
| 401k | 3/2/2009 |
Q: My husband is telling me to withdrawal my money out of my 401k and put it in a CD or IRa. My ...
A: Questions: Your date of birth? Still employed by the 401(k) sponsor? If so, whom? State you live ...
|
| Retirement Question | 2/23/2009 |
Q: #1 What is the best way to invest money received from social security disability? #2 How do I ...
A: No such option. What you can do, however, is pay off your credit card debt, pay off your car or get ...
|
| 401k Distribution | 2/22/2009 |
Q: My husband died in January and had a 401k in the neighborhood of $150,000. I am 39 1/2 years old. ...
A: You need to roll that account into a "pour-over" IRA. This is a non-taxable transaction. Once there ...
|
| Retirement Question | 2/22/2009 |
Q: #1 What is the best way to invest money received from social security disability? #2 How do I ...
A: Where you put your money should have no impact on SS DI and Medicare. On the other hand, ...
|
| IRA rollover | 2/20/2009 |
Q: .......... I'm 58 and currently have about $100,000 invested in an IRA with Wachovia which used to ...
A: Your question suggests that this is a Variable Annuity. If it is, I would not recommend it. The ...
|
| Followup: Traditional IRA convert to ROTH IRA | 2/16/2009 |
Q: Brumbaugh: I am married 57 with several Traditional Rollover IRA's and a ROTH IRA. My wife is 55 ...
A: I'm sorry for the delay. I have been on my honeymoon. I am having difficulty determining the values ...
|
| Traditional IRA convert to ROTH IRA | 2/15/2009 |
Q: Brumbaugh: I am married 57 with several Traditional Rollover IRA's and a ROTH IRA. My wife is 55 ...
A: In the event of your passing your regular IRAs will be diminished by income taxes, while the Roth ...
|
| keogh plan | 2/9/2009 |
Q: My dad is 80, he had his own sole proprietor business, and has a keogh money purchase and profit ...
A: He is not too old to convert any Qualified Plan to an IRA. He is merely too old to contribute to ...
|
| IRA | 2/5/2009 |
Q: Just over a year ago, I opened an IRA with an aggressive risk tolerance and a “sales load of 5.49%.” ...
A: I deliberately got out of the stock market related financial products over 30 years ago, and have ...
|
| Re: Starting a ROTH IRA | 2/5/2009 |
Q: My husband and I both have retirement plans at work and they also give us the option of contributing ...
A: It is good that both of you have employer provided retirement plans other than the 401(k) and ...
|
| 401(k) loan - can I default? | 2/4/2009 |
Q: As an active employee with an outstanding loan balance on 401(k), is there any way I can default on ...
A: The fact that you are trying to avoid eviction is the reason a hardship withdrawal should be ...
|
| 401(k) rollover | 2/3/2009 |
Q: I was previously self employed and created an individual 401(k) to which I contributed for several ...
A: That depends on your situation. If you can afford the income taxes on that transformation, and you ...
|
| roth ira withdrawl | 2/1/2009 |
Q: I have read your responses to recent question on this subject. My question is --I put 10k after tax ...
A: This is a tax question that is outside of my experience. The rule is that you can withdraw what you ...
|
| 401k withdrawal penalty | 1/29/2009 |
Q: My company had a 401k plan which they ended this past summer. I chose to withdraw my funds (approx ...
A: Since you took immediate distribution of the 80%, it is figured on the amount that your account was ...
|
| withdrawl from IRA | 1/29/2009 |
Q: In July of 2008 seeing my IRA melt away I withdrew $40,000 from my IRA to purchase an investment ...
A: Unless you transferred the $40,000 into an IRA REIT, most likely you will be subject to the tax and ...
|
| IRAs | 1/28/2009 |
Q: Over the past 30 years I have put a portion of my income aside in IRA's for retirement. During this ...
A: There are alternatives that may have not looked so good to you in the past, but may look a whole lot ...
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| Roth IRAs, 401ks, and annuities | 1/24/2009 |
Q: I am wondering which of these would be better for my mom. She is a teacher in TX and has been ...
A: Fixed and Fixed Indexed Annuities are good instruments to use for Roth IRAs. The traditional IRAs ...
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| 401K rollover to IRA or Roth IRA | 1/21/2009 |
Q: What are the advantages and disadvantages to rollover my 401K to the traditional IRA or a Roth IRA? ...
A: You are correct in your understanding regarding the taxation of the Roth IRA. While I am a strong ...
|
| BENCO ACCOUT | 1/19/2009 |
Q: MY DAD HAS A BENCO ACCOUNT AND HE HAS CAR PAYMENTS AND HE WOULD LIKE TO WITHDRAWL THE MONEY AND PAY ...
A: 1. Assuming the loan interest is greater than what the Benco account is earning, I suggest that he ...
|
| how do I | 1/16/2009 |
Q: I want to take the monies from my 401k and roll over to a roth IRA, will there be penalties and how ...
A: There is no Federal penalty for moving funds from a 401(k) to a Roth IRA. However, there are steps ...
|
| layoff and 401k | 1/15/2009 |
Q: I am 58 and am worried about a layoff which almost seems a sure thing--I have 8 yrs. left on my ...
A: You are so close to qualifying for penalty free withdrawals, that I hope that it is not necessary ...
|
| rollover variable annuity | 1/14/2009 |
Q: I have a variable annuity with Hartford purchased through Suntrust Bank. I now realize that the Band ...
A: Even if you could roll your remaining account value into your company's Qualified account, I would ...
|
| Rollover IRA that's a Variable Annuity (V.A.) | 1/13/2009 |
Q: I'm being laid-off. I am turning 50 this year. I saw a financial counselor today that recommended ...
A: In my opinion there is no good reason to put your hard earned money (or what's left of it) into a ...
|
| 403 (b) to IR A | 1/11/2009 |
Q: I retired Aug.31, 08. I want to direct rollover several 403(B)'s to one IRA. How long do I have to ...
A: I don't think you have a problem with when the funds have to be moved. But once you have asked for ...
|
| retirement | 1/9/2009 |
Q: 64 yo newly retired, started collecting ss, living w/adult kids, no extrodinary expenses @ this ...
A: First, let's add this up. 1. 403(b) $150,000 2. 401(k) 85,000 3. DB Plan ...
|
| 2009 RMD rules | 1/5/2009 |
Q: My IRA is in a certificate of deposit. I am 75 years old and would like to know if I will be ...
A: At your age there is no such thing as a premature distribution. The special rule that you are ...
|
| CDs within an IRA? | 12/27/2008 |
Q: I have stocks, mutual funds, and bonds within an IRA. Does the law allow these to be sold and the ...
A: Yes. You can move or part into alternate IRAs. You can liquidate accounts when ever you want. You ...
|
| 401k withdrawal | 12/23/2008 |
Q: If I withdraw after 70-1/2 more than the minimum for one year from my 401k can I withdraw less than ...
A: No. What you should do, however, is withdraw as much as you can each year without putting yourself ...
|
| 457 vs life insurance policy | 12/22/2008 |
Q: 57 vs flexible premium adjustable life insurance policy which is better? I still have 20 years to go ...
A: Because you have so much time to save for retirement, and you show a definite interest in building ...
|
| pour -over IRA and 72t details | 12/20/2008 |
Q: I am 55 years old and married. I recently lost my job due to company downsizing. If my research is ...
A: Any administrator of an IRA plan would have the appropriate forms for authorizing a transfer into an ...
|
| 401K Partial Withdrawal & Rollover | 12/20/2008 |
Q: I am 55 years old and married. I recently lost my job due to company downsizing. If my research is ...
A: To avoid the 20% withholding you must request that the account be transferred into a "pour-over" ...
|
| Early Withdrawal of 401K funds - hardship | 12/17/2008 |
Q: Is there any type of condition which allows me to have early withdrawal of my 401K funds due to ...
A: A hardship withdrawal is related to distributions from an active 401(k), that is, one taken while ...
|
| Re: medicade and 401K | 12/15/2008 |
Q: My brother lives in CT and is receiving disability. He has finally qualified for medicaid and has a ...
A: Since he is on MediCare, his 401 (k) is not vulnerable to Government attachment for medical ...
|
| 401k | 12/15/2008 |
Q: Does it make sense to self manage your 401k if the employer is no longer contributing, if I am 65 ...
A: I would use either a traditional Fixed Annuity or a Fixed Indexed Annuity. These both guarantee the ...
|
| Re: medicade and 401K | 12/14/2008 |
Q: My brother lives in CT and is receiving disability. He has finally qualified for medicaid and has a ...
A: If he was able to qualify for MedicAid while having the 401(k), maybe he should leave the money in ...
|
| 401k | 12/14/2008 |
Q: Does it make sense to self manage your 401k if the employer is no longer contributing, if I am 65 ...
A: If your company permits Non-Hardship distribution of 401(k) funds into a self-directed IRA, I ...
|
| Hardship withdrawls from 401k | 12/11/2008 |
Q: I apologize if you have already aswered this in this forum but, I am currently trying to avoid a ...
A: To avoid foreclosure is one of the approved reasons for a hardship withdrawal. Taxes can be ...
|
| Retirement Planning | 12/10/2008 |
Q: My husband and I do not qualify for contributions to a ROTH IRA due to income level. Right now, we ...
A: I understand where you are coming from. One of the issues have to deal with on a regular basis is ...
|
| Retirement Planning | 12/7/2008 |
Q: My husband and I do not qualify for contributions to a ROTH IRA due to income level. Right now, we ...
A: Please forgive me if I seem too eager to have you as a client. But you have described yourselves as ...
|
| 457K | 12/5/2008 |
Q: I work for a government that has a 457K or may be 457B. There are no matching funds. Should I ...
A: This is an easy question for me, though the answer is not obvious for most "experts". The simple ...
|
| 401k/student loan | 12/3/2008 |
Q: I am considering using our 401K to pay for my college tuition. I have been attending college part ...
A: Based on my conversations with an IRS agent and Dr. Shelby Smith of the BHC Marketing organization, ...
|
| How do I convert a Traditional IRA funded with after dollars to a Roth IRA? | 12/2/2008 |
Q: How do I convert a Traditional IRA funded with after dollars to a Roth IRA? Thank you
A: I have not dealt with this question before, and I could not find anything written specifically about ...
|
| Minimum Required Distribution | 12/1/2008 |
Q: I reached 70 years old on Jan 21, 2008. I have been working for the last 11 years without a break ...
A: In a sense, all of them. However, you are not required to take withdrawals from each one every year. ...
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| IRA | 11/25/2008 |
Q: My wife has 403(b) and DCP plan with her former employer and we are planning to convert that to an ...
A: 1. You can convert the 403(b) directly into a Roth IRA. However, if you do that while still working, ...
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| 401k & life insurance trust | 11/16/2008 |
Q: I just starting working as a consultant from July of this year. I plan to work for about 2 to 3 ...
A: I read the entire Rolf Auster article as you have sent it. It is convoluted and not complete in its ...
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| rmd from annuitiy | 11/12/2008 |
Q: This year my annuity has dropped but has a very high death benefit. I understand that there is a ...
A: RMD is based on the accumulation value of the Qualified Account on 12/31 of the year preceding the ...
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| starting / deciding about retirement planing | 11/11/2008 |
Q: Willard, Here is a "big" question for which probably there is no definite answer. But any ...
A: If I were you, I would immediately put $5,000 of the $8,000 into a Roth IRA. The Roth IRA is one of ...
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| 401K move to Roth IRA | 11/8/2008 |
Q: Brumbaugh, I would like to know if there are any penalties from moving my 401k to my existing Roth ...
A: I am pretty sure that you cannot combine the two. Rolling qualified funds into a Roth initiates a ...
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| Are there subsets of terms associated with "Traditional" IRA's? | 11/7/2008 |
Q: Can an account that has a designation of "R/O IRA" (Rollover IRA) at one custodian be transferred to ...
A: It is my practice to retain a Rollover IRA as a separate instrument from an on-going contributory ...
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| 401k Loan Payoff Options | 11/4/2008 |
Q: I have an outstanding loan on my 401k that I'm currently paying off, its scheduled to be completed ...
A: You are welcome. I am an iconoclast. I tell people facts that tear down common myths, things people ...
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| 401k Loan Payoff Options | 11/3/2008 |
Q: I have an outstanding loan on my 401k that I'm currently paying off, its scheduled to be completed ...
A: In addition to the income tax on the loan, you will pay a 10% Federal premature distribution charge. ...
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| traditional IRA and 403b | 11/1/2008 |
Q: My employer provide 403b and the maximum amount for this retirement account is $15,500. I only ...
A: Mathematically and as far as tax consequences are concerned, there is no difference between the two. ...
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| Deductible and non-deductible IRA | 10/29/2008 |
Q: I am confuse on deductible and non-deductible IRA. How to we determind is deductible and ...
A: Whether traditional or Roth, contributions to either can only be made in years in which the ...
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| Deductible and non-deductible IRA | 10/28/2008 |
Q: I am confuse on deductible and non-deductible IRA. How to we determind is deductible and ...
A: A traditional IRA is deductible as long as the participant is eligible for one. However, when ...
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| Roth IRA | 10/27/2008 |
Q: If you want to obtain medicaid for the purpose of entering a nursing home. Is a Roth IRA considered ...
A: You could purchase an Immediate Annuity. Once the Roth has been annuitized it has no surrender ...
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| Roth IRA | 10/27/2008 |
Q: If you want to obtain medicaid for the purpose of entering a nursing home. Is a Roth IRA considered ...
A: Great questions!! You made me dig for the answers. The Roth IRA, outside the irrevocable trust ...
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| fixed index annuity vs TSP 'G' | 10/26/2008 |
Q: Age 62 federal annuitant with TSP in 'G'fund. Moving TSP to a fixed annuity based on index looks ...
A: Moving the TSP to a Fixed or Fixed Indexed Annuity is a wise move. Prior to age 59 1/2, it would ...
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| Retirement - 401K, Social Security | 10/23/2008 |
Q: My husband & I are true baby boomers. We have no Pension plan, so we truly will rely on our 401K ...
A: I don't understand why you can withdraw only $32,000 from your 401(k). Is there a stipulation in ...
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| Federal TSP to Roth IRA Conversion | 10/21/2008 |
Q: Brumbaugh: I'm separated from federal service and can move my TSP to a Roth IRA (the handful of TSP ...
A: If you move your TSP into a Roth, you will have to leave the funds there for five years before you ...
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| 401k rollover | 10/21/2008 |
Q: Can I rollover my 401K to a traditional IRA at 591/2 even if I'm not retiring. How much of my 401K ...
A: Both the IRS and ERISA allow for rolling 401(k) funds into self directed IRAs while still employed ...
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| safety of 40lK | 10/13/2008 |
Q: should a 40 yr female (single, working, earning a good salary take her money out of 40lK and put ...
A: If you can move your 401(k) to an IRA, I recommend that you do so. Once in the IRA you can convert ...
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| retirement planning | 10/12/2008 |
Q: Mr Brumbaugh - I am 67, divorced and retired. I have $100K in CDs which is at least safe, and ...
A: I cannot predict what the Fidelity account will do, but if you want safety and a competitive rate of ...
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| Retirement Plan | 10/10/2008 |
Q: I work for a huge company and have a retirement plan with them. Are no company sponsored retirement ...
A: Most 401(k)s have no protection from stock market collapses. This is one of the reasons that I ...
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| Permanent Life vs. Roth IRA | 10/6/2008 |
Q: Willard- Which option is best and what are the pros and cons of Roth IRA's vs. Permanent Life ...
A: Both options are good for different reasons. But to declare one as best depends on the ...
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| TSP to IRA Transfer | 10/5/2008 |
Q: I would like very much to move/transfer 90% of my TSP (Federal Employee) to a normal or traditional ...
A: It looks like you have been reading my material. I know that many 401(k) sponsoring employers are ...
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| closing 401 K account | 10/1/2008 |
Q: Greetings! I have been contributing to a John Hancock 401K plan for 11 years. The small company I ...
A: I don't think I can give you a good reason for the delay in payment, but I can advise you. If they ...
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| Retirement RollOver | 9/30/2008 |
Q: I have two plans on my employer profile. One is a 403(b) plan on which I used to make 4% ...
A: Annuities are savings products offered by life insurance companies. Life insurance companies are ...
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| Can I Work Part-Time As a Certified Financial Advisor? | 9/24/2008 |
Q: I plan on starting an acupuncture practice & would also love to learn more about investing & ...
A: This seems awfully familiar to a question I answered some time ago. I do not encourage doing this ...
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| non qualified annuity 10% penalty | 9/20/2008 |
Q: My question is if for example I put 50k into a non qualilied annuity and its now worth 100k. (I'am ...
A: It is my understanding that it applies to the interest. Remember that the IRS sees all withdrawals ...
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| AIG IRA Account | 9/15/2008 |
Q: Mr. Brumbaugh, I opened $80k with AIG IRA acct. at 2006. I was approched by WMBanker advising me ...
A: Huntington, AIG offers products that cover a wide range of risk and safety. I am not able to ...
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| company 401 distribution to existing ira | 9/15/2008 |
Q: I am currently 61 and looking to roll my existing company 401 into an existing IRA I have with ...
A: As to the first issue, I believe that your state's Department of Labor would be interested in what ...
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| IRA investing | 9/14/2008 |
Q: 2 weeks ago, I was laid off by my employer, who shipped our work to China. I am rolling my 401k ...
A: There is no need to cash out your 401(k). I strongly recommend that you do a transfer into a ...
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| IRA with QDO | 9/13/2008 |
Q: I received my husbands IRA with a QDO and understand that I will be taxed 20% off the top. I will ...
A: It is a shame that marriage so often becomes the cause of shattered dreams. If you need help with ...
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| IRA with QDO | 9/13/2008 |
Q: I received my husbands IRA with a QDO and understand that I will be taxed 20% off the top. I will ...
A: First, you should never roll money into a 401(k) when you aren't required to. But what is a DQO? Is ...
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| 401k Loan Payments or Increase Contribution? | 9/11/2008 |
Q: My employer gives me a 15% profit sharing bonus each year into my 401k account, this comes to about ...
A: I suggest that you pay off the loan as quickly as you can. Until it is paid off, you are vulnerable ...
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| pensions | 9/9/2008 |
Q: I worked for 20 years at a job with a pension they stop the pension about 3 years ago. I am no ...
A: That person does not have to be an LUTCF, but you do need some entity that administers Individual ...
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| pensions | 9/9/2008 |
Q: I worked for 20 years at a job with a pension they stop the pension about 3 years ago. I am no ...
A: Generally,yes you can. This is one of the services that I am licensed to help my clients do. But to ...
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| Husband quitting job... what about 401k and stock? | 9/9/2008 |
Q: My husband has been at this company 10 years and we have not dealt with a change of jobs since ...
A: Your husband should have an IRA administrator request a transfer of the entire account into a ...
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| 401(k), cashing out | 8/30/2008 |
Q: Is it possible to stop contributions to my 401(k), and cash out, (understanding the tax liability), ...
A: According to information that has been provided to me concerning ERISA rules, you can move your ...
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| Documentation needed to avoid penalty for IRA early distribution | 8/25/2008 |
Q: First, thank you for answering my question related to my retirement savings. Unfortunately, I have ...
A: I am sorry for your state of health. While I pray that you can eventually break free of this ...
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| Paying off credit card debt with 401K | 8/22/2008 |
Q: Mr. Brumbaugh, My husband has a 401K worth 52K and we have about 18K in credit card debt and have ...
A: Fidelity is correct when the person requesting the withdrawal is still employed by the sponsoring ...
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| Early Retirement | 8/21/2008 |
Q: I forgot to ask: 1. What a typical rate of return to expect? 2. Is the principal is insured? 3. ...
A: 1. I cannot say that there is a typical rate of return, but I can give an example of a nationally ...
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| ira's | 8/20/2008 |
Q: I turned 70 last December. This year I will have to began withdrawing funds from my IRA. I was ...
A: Bank CDs have FDIC coverage, but generally are not as competitive as Fixed Annuities. I would stay ...
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| early retirement | 8/19/2008 |
Q: I am eligible to paticipate in my employers Early retirement plan. I am 55 and plan on working ...
A: An IRA composed of a traditional Fixed Annuity or a Fixed Indexed Annuity, or a combination of the ...
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| Late bloomer Boomer, help (401 & life insurance) | 8/15/2008 |
Q: Mr. Brumbaugh, I am a 57yr-old healthy woman who has struggled long and hard financially. Twice ...
A: Ordinarily I recommend Roth IRAs and some form of permanent life insurance as the tools for creating ...
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| Paying off credit card debt with 401K | 8/11/2008 |
Q: Mr. Brumbaugh, My husband has a 401K worth 52K and we have about 18K in credit card debt and have ...
A: 1. A lot depends on how much interest you are paying on your credit cards. It is a fact that should ...
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| scared to death | 8/5/2008 |
Q: Mr. Brumbaugh- Thank you in advance for your knowledge on any of this matter. My husband and I ...
A: It appears that your mother-in-law is a victim of elder abuse. I suggest that you contact an ...
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| Retirement | 7/31/2008 |
Q: I am 28 yrs. old, female/R.N, engaged. Me and my fiance are big into the idea of NOT working our ...
A: You sound like the perfect client for a person like me. Most people are not thinking out their life ...
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| disability/widows pension | 7/28/2008 |
Q: i am 56 years old and receiving disabilty and widows disability.my husband retired after 20 years of ...
A: Was your husband disabled? If so, was it service connected? My bride-to-be was widowed a little ...
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| where to put my money? | 7/25/2008 |
Q: I put my money in the first two banks, which is very dangerous, ...
A: During the Great Depression, while banks were failing, life insurance companies were growing. The ...
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| beneficiary designation for an IRA | 7/24/2008 |
Q: Can you suggest what would be the correct way to list the beneficiary for my IRA given that I would ...
A: I don't know about the laws of your state, but in my state the only way that children under the age ...
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| 401k | 7/24/2008 |
Q: Brumbaugh: My wife has a frozen 401k with National Semiconductor... she also has a VISA credit card ...
A: The 20% withholding would not, in itself, be enough to pay the income tax on the whole account and ...
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| 401k | 7/22/2008 |
Q: Brumbaugh: My wife has a frozen 401k with National Semiconductor... she also has a VISA credit card ...
A: As far as I know, there is no connection between the credit card and the 401(k). I would encourage ...
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| Annuitity - how do i get out | 7/22/2008 |
Q: Not aware of what i was buying. Bank sold me Annuities. Surrender is coming up and they want to sell ...
A: Annuities can be a good financial vehicle, but not for everyone, and not every type of annuity. ...
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| Old 401k to New? | 7/20/2008 |
Q: I current have $58,000 in my old employer 401k with Vangaurd. My new employer 401K is with Principal ...
A: A "pour-over" IRA is any qualified financial vehicle that is allowed to receive funds from a ...
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| Old 401k to New? | 7/20/2008 |
Q: I current have $58,000 in my old employer 401k with Vangaurd. My new employer 401K is with Principal ...
A: You have the opportunity to gain control over the level of risk, and gain greater accessibilty by ...
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| Roth IRA | 7/19/2008 |
Q: My mother is 48 years old and has absolutely nothing set up for her retirement. She is self employed ...
A: I see that your nature matches your name. Roth IRAs, just like traditional IRAs, are based on the ...
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| 401k vs credit card debt | 7/9/2008 |
Q: We have 30k in high interest credit card debt, I believe our average is about 11%. We get zero ...
A: If this 401(k) is with your current employer, you may be able to borrow from it, but a withdrawal ...
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| Profit Sharing Checks after termination | 7/7/2008 |
Q: I live in Florida. I was fired from my job in February of 2007. I was still eligible to receive my ...
A: If I understand what the company is trying to say, they may be partially right. It is a fact that ...
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| 403 B | 6/28/2008 |
Q: My previous employer recently moved their 403 plan from AIG to a different company. Under AIG I had ...
A: I suggest that you move both accounts into a pour-over IRA. Since you are no longer associated with ...
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| Equity Indexed Annuitiy | 6/25/2008 |
Q: I am currently talking to a small employer in Indiana that has a O.K.'D with 22 employees. It is a ...
A: I suggest that you ask the annuity company that you intend to use if they have been involved in ...
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| Switch 401k to 'after-tax' contributions? | 6/24/2008 |
Q: I've heard some talk of Roth IRAs being better in the long run. My question : I have $122,000 in ...
A: The advent of the Roth IRA, and later the Roth 401(k), came as a result of the realization that many ...
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| Variable Annuities | 6/14/2008 |
Q: My husband was employed at a company that recently closed, he has a pension of about $68,000. He is ...
A: I am well aware that there are many who will disagree with me, so let's just say that this is my ...
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| 401(k) vs 457(b) | 6/10/2008 |
Q: I am 27 and I just started working for the State of Texas. They offer both a 401(k) and a 457(b)but ...
A: Is your participation required in order to get employer contributions? If so, only contribute that ...
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| $01 and 403B withdrawls | 6/7/2008 |
Q: I was a teacher and have a small amount in a 403B account. My husband has a couple of 401K ...
A: Please tell me what is in each of your accounts and your dates of birth. If these accounts are from ...
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| 401 transfer ira | 6/5/2008 |
Q: What would be the best way to transfer a 401k to a Ira and use it to pay down our mortgage as far as ...
A: Because you need the money now, I suggest that you have your bank request a pour-over to an IRA. ...
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| Taxes on IRA to Roth IRA Conversion | 5/31/2008 |
Q: Assuming a $500K IRA, when converting this to a Roth IRA, will the taxes be based on my current tax ...
A: 1. Is the $8,300 per month over five years the liquidation of the IRA? 2. The most that can be put ...
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| cash in life insur. | 5/31/2008 |
Q: my parents bought me a life insur. policy in 1986, was a 1 time payment of $10,000. today the cash ...
A: Two companies, and there are quite a few that would be acceptable, that I might recommend are North ...
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| cash in life insur. | 5/30/2008 |
Q: my parents bought me a life insur. policy in 1986, was a 1 time payment of $10,000. today the cash ...
A: This cannot be a Roth IRA. But it might make it possible to move other funds into a Roth. A ...
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| cash in life insur. | 5/29/2008 |
Q: my parents bought me a life insur. policy in 1986, was a 1 time payment of $10,000. today the cash ...
A: If you were to do a 1035 exchange to a retirement annuity, all gains would transfer tax-deferred ...
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| Close out my Roth? | 5/29/2008 |
Q: Scenario: Opened Roth in 1998 w/ $2K, added another $2K in 2000, so $4K basis. Current value is ~ ...
A: It probably would be wise to keep the Roth in force in case you are able to make contributions at ...
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| 401K MONEY TO PURCHASE HOME | 5/24/2008 |
Q: I want to know, do I have to pay the 10% tax penalty under the provision 575 if I use my 401k money ...
A: I am sorry that you waited to contact me after the fact. I could have saved you money. Yours is ...
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| 401k withdraws for disability | 5/23/2008 |
Q: I am helping my friend to get on SSI and other programs. She has schizophrenia that came on when ...
A: 1. If she is disabled, why hasn't she applied for Social Security Disability? 2. As a permanently ...
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| Early withdrawal from 401K/IRA | 5/22/2008 |
Q: I want to purchase my first home and would like to borrow or withdraw enough money from my 401K to ...
A: You are permitted only a $10,000 withdrawal for the first time purchase. You will have to apply the ...
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| partial 401K withdraw at age 59-1/2 | 5/19/2008 |
Q: I will be 59-1/2 this month. And was thinking of taking a partial withdraw of my 401K to pay off my ...
A: Three things you have not dislosed are: A. the mortgage interest rate, B. your tax bracket, C. The ...
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| Roll over cash balance Plan | 5/15/2008 |
Q: I have a cash balance pension plan that I would like to roll over to my new company 401K plan but ...
A: There are two things that you should not want to do: leave the funds where they are, and move the ...
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| debt vs retirement | 5/13/2008 |
Q: I am wondering if it is better to liquify some of my retirement in order to pay off debt. I'm going ...
A: Whether or not it makes sense to divert your contribution from the Sep IRA to your credit card debt ...
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| 401K withdrawl at retirement | 5/7/2008 |
Q: I will be retiring next year and will have reached the required age of 59 1/2 before my retirement ...
A: It would appear that you can do nothing, unless you are already 59 1/2 and you are no longer with ...
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| 401k rollover | 5/5/2008 |
Q: I recently took a buyout from Chrysler and have $35k in my 401k account. I plan on rolling it over. ...
A: Your former employer is required by law to withhold 20% of your account, if you take a direct ...
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| Annuity transfer? | 5/1/2008 |
Q: At a vulnerable time in my life, I purchased two variable annuities through a local salesman from ...
A: You are fortunate to have had only a four year surrender charge period. Most have seven to fifteen ...
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| Ira 60 day rollover | 5/1/2008 |
Q: How many 60 day rollovers are allowed in a year.. I have IRA plans with multiple Companies.. I ...
A: Each separate IRA, when any portion is being rolled over to another IRA, is eligible for the 60 day ...
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| 401K from QDR rollover to IRA while on SSD | 4/30/2008 |
Q: I am 47 year old woman on Social Security Disability. Part of legal separation was almost half of ...
A: Since you are disabled, you can convert your share of the 401(k) into an IRA and immediately begin ...
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| equities indexed universal life | 4/23/2008 |
Q: I'm 62 y. o. and have $200K in company pre-tax IIRA accts. I 'm thinking of getting EIUL or ...
A: 1. The surrender value is usually called the Net Cash Value. There will be two such columns: ...
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| equities indexed universal life | 4/22/2008 |
Q: I'm 62 y. o. and have $200K in company pre-tax IIRA accts. I 'm thinking of getting EIUL or ...
A: Equity Indexed Annuities are definitely safer than Variable Annuities and mutual funds. The same ...
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| Question concerning my 401k | 4/21/2008 |
Q: . I am a 34 yr. old single male. I teach school for a living having an income of 38500 and a net of ...
A: Your contribution to your 401k) should be limited to what your employer is matching. The employer ...
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| Received 40% Federal Pension in Divorce Settlement | 4/18/2008 |
Q: I am 50. My ex-husband just retired. Per our QDRO/divorce settlement, I was awarded 40% of his ...
A: 1. I am not familiar with taxation rules regarding divorce settlements. 2. Buy a house. The ...
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| 2 401(k)'s? | 4/18/2008 |
Q: I got laid off from my job last month but was fortunate to find a new better paying position fairly ...
A: First it must be understood that there is no way to know what is your best investment option. ...
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| 401k Distribution | 4/13/2008 |
Q: About 8 months ago, I fell on hard times and asked (our finance director) to cash out of my 401k (it ...
A: Whenever a distribution from a 401(k) goes straight to the employee, Federal law mandates that the ...
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| Variable annuity vs fixed indexed annuity | 4/10/2008 |
Q: Do either of these annuities avoid probate? What are the tax advantages to each?
A: As long as the annuity contract includes named beneficiaries, there is no probate. At least, that is ...
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| IRA rollover to 401(k) | 4/7/2008 |
Q: I have a loan out against my 401(k). I also have a separate IRA. can I rollover funds from my IRA ...
A: Rolling your IRA,if you could do it, would only increase the value of your 401(k). It would have no ...
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| NEXT MOVE | 4/6/2008 |
Q: I have a five-figure dollar amount with Calstrs, the California-based teacher retirement management ...
A: You are in an enviable position, in that you can roll money that you do not have control of into an ...
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| 401(k | 4/5/2008 |
Q: My son left a company approximately 5 years ago and has not done anything with the funds in his ...
A: Is that the proper spelling? I recommend that your son remove his former employer's hand from his ...
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| ira's | 4/5/2008 |
Q: paying taxes on a ira traditional at age 65 $50,000 who pay taxes? thanks
A: Anyone receiving income must report that income, unless it is specifically excluded. Only the Roth ...
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| 401(k) & Plant Closing | 4/3/2008 |
Q: Willard. The plant I work for in here in Michigan announced it's closing in a few months. If I ...
A: Moving the funds into an IRA also postones the income taxes. In neither case, though, are the income ...
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| 401(k) & Plant Closing | 4/3/2008 |
Q: Willard. The plant I work for in here in Michigan announced it's closing in a few months. If I ...
A: 1. It is in your best interest to never roll a past employer's 401(k) into the next employer's ...
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| 401k withdrawal | 4/3/2008 |
Q: If you are between the age of 62 and 66 (full retirement age) how much can you withdraw out of your ...
A: My understanding is that your withdrawal from the 401(k) is treated as though it is interest income, ...
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| 401k after being laid off | 4/2/2008 |
Q: Willard, I may be soon laid off from my current employer. My question is, what should I do with my ...
A: Jennifer. It is imperative that you do an institution-to-institution transfer of your 401(k) to a ...
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| Interest income. | 3/27/2008 |
Q: I expect to have $300,000 in my 401K at retirement. How much would I be making in interest income ...
A: The simple answer would be to divide the account value by 100, and then by 2: $300,000/100=$3,000; ...
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| What to do after a 401k hardship withdrawl? | 3/25/2008 |
Q: Unfortunately this year I made a large hardship withdrawal from my 401k. I did it to not have to ...
A: I guess there is no easy way to say this. If you have taken a withdrawal and not a loan, unless ...
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| What to do after a 401k hardship withdrawl? | 3/25/2008 |
Q: Unfortunately this year I made a large hardship withdrawal from my 401k. I did it to not have to ...
A: If I understand your answers you now have a $175,000 loan against a 401(k) account value of ...
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| 401k being held hostage!!!! | 3/24/2008 |
Q: I recently left employement after 16 years and I have a substantial amount of money in a 401k/profit ...
A: I am not a lawyer, and this appears to be a legal matter. However I am willing to help you any way I ...
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| What to do after a 401k hardship withdrawl? | 3/24/2008 |
Q: Unfortunately this year I made a large hardship withdrawal from my 401k. I did it to not have to ...
A: What is the market value of your home? How much do you owe? Was the money you withdrew from your ...
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| IRA | 3/22/2008 |
Q: I am over 50. What is the the max I can contribute to a ROTH for each of the next few years? Thanks ...
A: Your earned income or $6,000, whichever is less. If you are married and your spouse is not working, ...
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| 401k Loan Default | 3/21/2008 |
Q: I have two loans from my 401k through my previous employer which defaulted as of yesterday 3/20. The ...
A: You need to talk to the 401(k) administrator. If you can move quickly enough, you might avoid the ...
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| gm buyout retirement | 3/19/2008 |
Q: I currently am planning on retirement from General Motors. I have 35 years of service and I am 53 ...
A: I am glad that you are doing well. A friend of mine just got a clean bill of health after a year of ...
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| rollover 401(k) funds | 3/18/2008 |
Q: I'm not thrilled with the offerings in my 401(k) plan. Can I rollover a portion of those funds to an ...
A: You are stuck! You can reduce your contributions to just that which qualifies you for your ...
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| Excess Roth IRA contribution | 3/17/2008 |
Q: I am about 1 year away from retiring and discovered when completing my 2007 tax return that I am not ...
A: The rules for IRAs, Roth IRAs and both are identical. Therefore the combined maximum for 2007 per ...
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| 401 k for a minor | 3/8/2008 |
Q: My 11 year old daughter earned about 4800 dollars in 2007 helping in her mother's solo proprieter ...
A: A Roth IRA is an excellent choice for her. As you know these vehicles grow tax deferred till age 59 ...
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| 401K withdrawal | 2/27/2008 |
Q: Brumbaugh, I understand that if I make an early withdrawal from a 401K that I am subject to taxes ...
A: Probably not, since the capital gains taxes are at a lower bracket than the earnings tax rate. Plus ...
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| 403b | 2/24/2008 |
Q: Willard: I am planning on completely retiring this june after 38 years of teaching. I am currently ...
A: Unless there has been a change in the law, you cannot go straight from a 403(b) to a Roth IRA. You ...
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| Early Withdrawal | 2/16/2008 |
Q: I am 49 years old and I have $900,000 in a Qualified Defined Contribution Plan. I have been asked ...
A: I am happy to tell you of a way that you can avoid the penalties. Based on your current age and the ...
|
| 401k Loan | 2/9/2008 |
Q: I have taken a 401k loan out and I am not age 59. I received my 1099 R form. What happens if I do ...
A: The fact that they would not let you repay the loan is a surprise to me. Since it is only $1,500, ...
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| IRA withdrawl and taxes | 2/8/2008 |
Q: I am 40 years old and, for a number of reasons, looking into early withdrawl of a Regular IRA and ...
A: If you want to avoid the penalty, set up a 72(t) distribution plan. At your current age, for this ...
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| 401K distribution/loan | 2/8/2008 |
Q: Last year I took a $35000 early distribution from my 401k. $7000 in tax was withheld - left with ...
A: This looks to me to be no transaction at all. You were merely paying off a loan. And it seems that ...
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| IRA withdrawl and taxes | 2/6/2008 |
Q: I am 40 years old and, for a number of reasons, looking into early withdrawl of a Regular IRA and ...
A: Because the $3,000 is money that you contributed to the IRA after tax, there would be no income tax ...
|
| new 401k law | 2/4/2008 |
Q: I read recently that in 2006 congress passed a law that will allow holders of 401k's to convert them ...
A: I cannot confirm or deny this information. However, last year it became possible for an employer to ...
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| 401k | 2/4/2008 |
Q: "I work for a marine transportation company that has beat its profit record for 17 consecutive ...
A: As long as you are putting all of your retirement savings into a 401(k) you are limited to the ...
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| 401k distributions | 2/3/2008 |
Q: Are 401K distributions subject to Social Security and Medicare taxes? I know they are considered so ...
A: Fair question! I have been advised that 401(k)and IRA distributions are treated the same as ...
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| cashing a pension as part of divorce | 1/31/2008 |
Q: I have a defined benefit pension plan from a previous employer. I am now in divorce proceedings and ...
A: I am sorry for your situation. I am not a lawyer, and it would appear that some of the answers you ...
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| 10% penalty on early withdrawl of 401K | 1/29/2008 |
Q: Is the 10% penalty that is paid on an early withdrawl of a 401K deductible anywhere on my federal or ...
A: I hope that you have not put yourself in the position to hve been charged that pnalty. That penalty ...
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| rollover 401K | 1/26/2008 |
Q: My husband is 60 and recently took a buy-out from his job. Our question is should we rollover his ...
A: He would be rolling it into an IRA anyway. The IRA could be any annuity that the two of you would ...
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| Cashing out a 401K | 1/23/2008 |
Q: Brunbaugh, we have about 16k in a credit card balance, that we would love to pay off now, as we're ...
A: I consider it an honor and personal validation to be responded to by a spouse of an inquirer. I have ...
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| Cashing out a 401K | 1/22/2008 |
Q: Brunbaugh, we have about 16k in a credit card balance, that we would love to pay off now, as we're ...
A: I appreciate your getting back to me. I have been hoping to "hear" from you. With this new ...
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| Unpaid 401K | 1/19/2008 |
Q: I have a rather complex cituation I am needing some help on and I am having trouble finding the ...
A: It appears that you have cause to contact your state's Labor Board. I hope this turns out to be more ...
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| Cashing out a 401K | 1/18/2008 |
Q: Brunbaugh, we have about 16k in a credit card balance, that we would love to pay off now, as we're ...
A: There are no loop holes. But there are choices to be made. I probably would recommend that you leave ...
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| IRA | 1/17/2008 |
Q: I am retirning from U.S. government service in June 2008 at age 66. Can I rollover my Thrift Saving ...
A: I am pretty sure that this is not allowed. The operative word is "individual". Money put into an IRA ...
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| non-qualified retirement account | 1/15/2008 |
Q: Are there non-qualified retirement accounts available privately or can I only get one if my ...
A: There are most definitely available non-qualified retirement plans not offered by employers. That is ...
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| Retirement account mix | 1/14/2008 |
Q: I currently have around 800K in retirement funds in three places. One is Fidelity and I intend to ...
A: Because I do not like to make recommendations that could end up going backwards, I terminatd my ...
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| 401-K Hardship Withdrawl | 1/9/2008 |
Q: Four months ago I was injured in a horseback riding accident and may have to undergo rotator cuff ...
A: I don't know what your 401(k) rules allow or limit regarding hardship loans. I don't think that your ...
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| Retirement | 1/8/2008 |
Q: I am 22 years old and self-employed. I have no investments or retirement savings as of yet but need ...
A: I know that some would disagree with me on this, but my first suggestion is that you should not be ...
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| Asset allocation | 1/4/2008 |
Q: I have a question about my portfolio balance and I was wondering if you could let me know if I have ...
A: Since I have chosen to drop my securities registration, it would be a violation of NASD regulations ...
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| 401k, Roth IRA or more savings=- for a young adult? | 1/4/2008 |
Q: So here is my situation: I'm 23 and I have no debt. Thus far I have $2,000 saved in a mutual fund ...
A: The first thing that I would do if I were you is reduce your 401(k) contributions to the 6% that ...
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| 401k distribution check question | 12/12/2007 |
Q: Brumbaugh, I recently received a certified letter from a past employer stating that their 401k ...
A: You're getting it! Unless you can get that 20% back from Fidelity, you must restore it to your IRA ...
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| 401k distribution check question | 12/12/2007 |
Q: Brumbaugh, I recently received a certified letter from a past employer stating that their 401k ...
A: The problem with the 20% withheld is that if you do not restore it to an IRA, not only will you be ...
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| 403b to 401k | 12/11/2007 |
Q: Our company currently has a 403b plan with Merril. We are in the process of ending this plan and ...
A: I got a response late yesterday from a CPA. It is his understanding that once the 403(b) has been ...
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| 403b to 401k | 12/11/2007 |
Q: Our company currently has a 403b plan with Merril. We are in the process of ending this plan and ...
A: 1. Can I do a in-kind transfer right to Fidelity? Not knowing Fidelity rules, I cannot answer this ...
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| Thinking LifeTime Income Prgrm. | 12/11/2007 |
Q: Willard, I'm retired 70 years old; just bought a condo with $100K mortgage loan (APR 6.25%); My ...
A: Since the annuity is not qualified, you are not obligated to take Required Minimum Distributions. ...
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| Retirement Loans | 11/28/2007 |
Q: If I take out a loan on my retirement and then leave my job, do I have to pay back the loan? Is the ...
A: In order to avoid the penalty, you would have to pay back the loan and any interest charged. The ...
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| early wd of 401k | 11/24/2007 |
Q: I have a 401k worth approx 13000 dollars with a previous employer. I am not working due to dx of ...
A: You cannot transfer a regular 401(k) into a Roth IRA. In order to get your funds into a Roth, you ...
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| Retirement accounts | 11/24/2007 |
Q: I had worked for this company for almost 20 years and had been terminated. I have about $60,000+ in ...
A: In order to avoid a 20% withholding, have your former employer send the account to an IRA ...
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| retirement @ 55 with Roth | 11/22/2007 |
Q: I've been contributing to a Roth account for approx 5 years. I would like to start withdrawing from ...
A: Since you are still four years short of age 56, and have close to five years in your Roth IRA, you ...
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| early wd of 401k | 11/17/2007 |
Q: I have a 401k worth approx 13000 dollars with a previous employer. I am not working due to dx of ...
A: I am sorry to hear of your condition. But I can help. Since you are no longer working for the ...
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| A question about annuities | 11/16/2007 |
Q: Just out of curiosity. Is the following correct? *All other things being equal*, a lifetime ...
A: It is true that you would receive a higher monthly income by locking in a fixed income for life. But ...
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| 401k and medicaid | 11/13/2007 |
Q: I have recently been diagnosed with ALS, Lou Gehrigs disease, and due to my condition have been ...
A: I am sorry for your diagnosis. I pray that you will have much time and strength. To avoid the 20% ...
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| 401K unpaid balance penalties | 11/11/2007 |
Q: I understand that there are penalties on unpaid 401K loans. Now, my questions are...is the penalty ...
A: It is my understanding that the penalty would be on the outstanding balance, not the original loan. ...
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| Convert 401k into Roth IRA? | 11/3/2007 |
Q: I'm single and I retired about a year ago. ALL of my living expenses are covered by my Social ...
A: You cannot roll a 401(k) directly into a Roth IRA. It must be first be rolled into a traditional ...
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| 403b from previous employer...what to do | 10/31/2007 |
Q: I have about $11,500 in a 403b from a previous employer. Is it better to leave it? Roll to IRA? ...
A: Ordinarily I would say move the money into an IRA, and then do 72(t) distributions to transfer the ...
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| 401k | 10/30/2007 |
Q: I have a chance to contribute to a 401k- I'm a pharmacist and in a high tax bracket I think around ...
A: Because you have a substantial amount of time in which to build a retirement plan, the odds are ...
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| Equity Index Annuities | 10/29/2007 |
Q: From what I understand, and EIA (Equity Index Annuity) is an annuity that credits interest based ...
A: This is an excellent question! EIAs, now called Fixed indexed Annuities, are backed by the assets ...
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| 401K WITHDRAWAL REQUIREMENTS | 10/25/2007 |
Q: Can you tell me what the minimum amount of withdrawal from a 401K that must be made after age 70 ...
A: The minimum distribution after age 70 is the account value at the end of the previous year divided ...
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| IRA Transfer | 10/24/2007 |
Q: I have roughly $30,000 in a traditional ira & $16,000 in a Roth with my mother set up as the ...
A: I can better advise you if you will tell me how much you have put into your Roth IRA, how long you ...
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| 401-K EARLY DISTRIBUTION | 10/22/2007 |
Q: I will be retiring at age 55 and have a 401-K plan. I will be requesting 10 annual distributions but ...
A: Under the Federal law, a person retiring at 55 is permitted to receive income from his or her 401(k) ...
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| 401-K EARLY DISTRIBUTION | 10/20/2007 |
Q: I will be retiring at age 55 and have a 401-K plan. I will be requesting 10 annual distributions but ...
A: In my opinion, transferring your 401(k) into an IRA is the wiser thing to do. However, should you do ...
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| withdraw SEP money | 10/16/2007 |
Q: I have an elder care issue with a surviving parent that needs to live with my with and I. We are ...
A: Assuming that the penalty is the same as for an IRA, it would be the income tax plus 10%. Some ...
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| Contributing to a Roth IRA | 10/15/2007 |
Q: My significant other and I are both retired. I receive income from Social Security Disability and a ...
A: Depending on your age the maximum that you can put in is $5,000, $4,000 if you are under age 50. ...
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| Contributing to a Roth IRA | 10/14/2007 |
Q: My significant other and I are both retired. I receive income from Social Security Disability and a ...
A: Your concern is justified. Roth IRA contributions, just like traditional IRA contributions, must be ...
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| 401k | 10/9/2007 |
Q: How do I open a 401k if the employer, does contribute?
A: Your company's human resources officer can help you with that. There may be an attempt to get you ...
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| My retirement account | 10/6/2007 |
Q: Willard, Thanks in advance for your advice. This IRA stuff is way out of my expertise... I have ...
A: You are right about the taxation of the distribution. As for your tax bracket at retirement, if you ...
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| My retirement account | 10/5/2007 |
Q: Willard, Thanks in advance for your advice. This IRA stuff is way out of my expertise... I have ...
A: Because you are 50, and you have earned income of $5,000 per year or more, you can put up to $5,000 ...
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| IRA | 9/28/2007 |
Q: I have a question about retirement accounts. I am 32. Two years ago (at age 30) I started a ...
A: The reason for two retirement accounts is that Social Security is being stretched to the limit. ...
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| IRA contribution | 9/20/2007 |
Q: I have been unemployed through 2007 and may not secure a job until 2008. That said I understand in ...
A: That is exactly what I am saying. Deposits into those accounts must represent application of income ...
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| IRA contribution | 9/20/2007 |
Q: I have been unemployed through 2007 and may not secure a job until 2008. That said I understand in ...
A: Zero! That is, as far as a 401(k) or IRA is concerned. But if you have other funds available, there ...
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| withdrawl from 401K | 9/19/2007 |
Q: I am recently divorced and in the divorce settlement, I am to receive 50% of my ex's 401K plan. Am ...
A: I am not a lawyer, but it seems to me that the divorce settlement does make that money yours. You ...
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| Late Retirement Planning | 9/10/2007 |
Q: I am a 40 year-old man who, unfortunately, has not been able to put any money away for retirement. I ...
A: Fair questions! Not knowing the economic realities of where you live, I can't be specific on what ...
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| Late Retirement Planning | 9/10/2007 |
Q: I am a 40 year-old man who, unfortunately, has not been able to put any money away for retirement. I ...
A: Forty is young from my perspective. It is not to late. Be careful that you do not try to make up ...
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| 401K | 9/7/2007 |
Q: I currently have a 401k with a previous employer. I want to roll that into a Retirement Certificate ...
A: I do encourage you to roll the old 401(k) into an IRA. But to use the IRA as collateral for a loan ...
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| 401k early withdrawl | 9/1/2007 |
Q: I left my job and am planning on cashing out my 401k to pay my credit cards bills. I have 29,000 in ...
A: I hope there is another way that you can accomplish your goal of paying off your credit cards. ...
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| 401K | 8/23/2007 |
Q: Brunbaugh, My wife and I are looking to close her 401K and stop contribtutions(we both have ...
A: This is a tough one. The fact that she is staying with the same employer eliminates the opportunity ...
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| retirement account | 8/23/2007 |
Q: My husband works for a company that pays into a retirement account for their employees every year. ...
A: The situation may be more complicated than you realize. If the money is immediately sent to the ...
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| 401k | 8/19/2007 |
Q: Currently I can't work and receive very low disability benefits. I need money for living. How can I ...
A: Since you are no longer working, you can roll out your 401(k) into an immediate retirement income. ...
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| early withdrawl of IRA or cash in Life Insurance Policy | 8/16/2007 |
Q: I am permanently disabled and have a question regarding my IRA and my Life Insurance Policy. I ...
A: Since you have the insurance company paying the premiums on your life insurance, I suggest that you ...
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| 401K loan and disability | 8/16/2007 |
Q: My husband's cardiologist wants him to stop working. We found that we can get short term and then ...
A: It is my understanding that he needs to pay off that loan, lest he be hit with tax and penalty. ...
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| 401K Rollover | 8/8/2007 |
Q: I am within 2 yrs of retirement and the recent volatile market has me edgy. I want to roll my 401K ...
A: I regret that I cannot give you better news. You are locked in to your 401(k) till you leave your ...
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| 401 K vs IRA | 7/26/2007 |
Q: I am 53 and I have retired from a major US company. I have been offered a job three days a week ...
A: If your combined Adjusted Gross Income is under $150,000 per year, you can contribute the full ...
|
| 401 K vs IRA | 7/25/2007 |
Q: I am 53 and I have retired from a major US company. I have been offered a job three days a week ...
A: If you are married, and your wife is also over age 50, you can put up to $10,000 into IRAs this ...
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| partial withdrawal of funds from 401k before 59 1/2 | 7/25/2007 |
Q: I am 57 yrs of age and currently receiving a fairly nice monthly pension from a previous job. I am ...
A: In order to get the $50,000 you want, to do the remodeling and the wedding, it is going to cost you ...
|
| 401k Rollover | 7/11/2007 |
Q: I am 26 and currently have about 13,000 in a 401k, and 2,000 in a Roth 401k all from my first ...
A: Your having a Roth 401(k) shows a high degree of sophistication on your part and that of your old ...
|
| roth 401k | 7/3/2007 |
Q: I have been in a pre tax 401k with my company for 15 yrs.We have now been offered the opportunity to ...
A: This is true for your contributions. Any contributions made by your employer would be subject to the ...
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| 401K or Roth IRA | 6/25/2007 |
Q: Up to the max amount that my employer matches my contribution, it's clear the advantage that the ...
A: You have come to the same conclusions regarding 401(k)s and Roth IRAs as I have. A basic financial ...
|
| 401k rollover | 6/25/2007 |
Q: I am a partner in a small company with a 401k plan. I no longer work for the company - i.e. do not ...
A: It is my opinion that ownership has no bearing on your legal right to pour over your 401(k) to an ...
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| I'd like to close out my 401K account | 6/25/2007 |
Q: I left a company after working there part time, in 1998, as the age of 46. I had forgotten about my ...
A: Rather than cashing out your 401(k), I believe that you would be better advised to roll it into a ...
|
| I'd like to close out my 401K account | 6/25/2007 |
Q: I left a company after working there part time, in 1998, as the age of 46. I had forgotten about my ...
A: Sometimes being debt free is not an improvement. You do have the means of paying off your mortgage, ...
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| 401K cashout options | 6/22/2007 |
Q: I know the knee-jerk response to anyone considering cashing out their 401K is “Don’t do it!” ...
A: I admire your willingness to take the blow for your parents. Before I give you my ideas, I need to ...
|
| 401k employee loan default | 6/22/2007 |
Q: If a person was to loose their job while owing a sizeable loan to their 401 would they be able to ...
A: I am assuming by the wording of your question that you are under age 59 1/2. If you are unable to ...
|
| 401k rollovers and Medicaid | 6/19/2007 |
Q: If I take my 401k from IBM and roll it over, because i was laid off; does that affect how Medicaid ...
A: It took me some time to get the information that would be useful to you. Simply leaving the money ...
|
| 401K - California Law | 6/18/2007 |
Q: My sister has asked my advice on her husband's 401K plan. They have been married over 30 years and ...
A: This sounds like a legal question, and I am not a lawyer. So, I cannot give the definitive answer. ...
|
| 401k | 6/8/2007 |
Q: Mr. Brumbaugh, I have fully vested 401-k and Cash Balance fund account with a company I left in ...
A: Happy birthday in July! I'll be 66 on July 13. In taking the company private, it should have no ...
|
| roth withdrawls on ss taxation | 6/5/2007 |
Q: I have made 403b to IRA to Roth conversions yearly, especially through the low stock market years. ...
A: You're right! Your age does work against you. The reason to put some funds into a life insurance ...
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| minimum withdrawel at age 70 1/2 from two different accounts | 6/3/2007 |
Q: First, Mr. Brumbaugh, I would like to thank and compliment you on sharing your knowledge, expertise ...
A: I am happy to inform you that you are mis-reading that table. Instead of a percentage, the 27.4 ...
|
| Lost IRA account | 5/23/2007 |
Q: I invested in an IRA account back in 1977/78 and trying to located my account. What do I do? ...
A: Has the company you had worked for gone out of business? Might it have been bought by another ...
|
| If both spouses have 403bs can both contribute the max amount of 15500? | 5/23/2007 |
Q: My wife and I work at two different hospitals. Both hospitals have 403b plans with an employer match ...
A: The maximum in this case is per person, not per household. Do I understand you correctly that both ...
|
| IRA | 5/21/2007 |
Q: How do IRAs work? I want to get a Roth IRA but am not sure how I earn the money in the account. Do ...
A: You need to have some kind of third party administrator to provide the instrument(s) forming the IRA ...
|
| 401K | 5/20/2007 |
Q: I am 60 years old, retiring in the next one to two months; can I take a distribution from my 401K ...
A: No distributions from your active 401(k) should be taken until you leave your employer. Since you ...
|
| hardship withdrawl on 401K | 5/18/2007 |
Q: My father (58 yrs old) had to go into a nursing home 16 months ago and my mother (56 and still ...
A: I am sorry for your family's heartache. Your Dad is awfully young for what he is going through. I ...
|
| 401k | 5/15/2007 |
Q: I think I have read that at 59 1/2 one can start taking money out of their 401k even if they are ...
A: My understanding is that unless you are over age 70, you cannot make withdrawals until you have left ...
|
| Conservative investments | 5/10/2007 |
Q: If I anticipate a major correction in the stock market or even a recession, what is the best way to ...
A: If they are available to you, Fixed Indexed Annuities and traditional Fixed Annuities would both ...
|
| 401 problems | 5/8/2007 |
Q: Good day to you, I left the US about 6 years ago to come back to Spain (my birthplace)and after ...
A: It seems that the only option you have is to return the funds to an IRA account in the States. I ...
|
| rollover | 5/7/2007 |
Q: I have left behind a 401K and a pension fund profit sharing plan at my old job...I am fully ...
A: Sounds like you really don't want to have to deal with someone at your former place of work. Not an ...
|
| 401K Rollover Loans | 5/7/2007 |
Q: I am a 43 year old engineer, married with one child. I was recently laid-off. I was in process of ...
A: There is no such plan. But here are a few things that you can do with an IRA that you probably would ...
|
| 403B | 5/5/2007 |
Q: A simple question- If I start a new 403B account with after tax money, can I take it off the top ...
A: I'm guessing that you are in a low tax bracket. If that is the case, your tax deferred will not be ...
|
| Early 401K withdrawal | 5/3/2007 |
Q: My husband cashed in his 401K from a prior employer after being terminated from his current ...
A: I have heard no such thing. Below is a description of acceptable reasons for pre-59 1/2 ...
|
| 401K to IRA | 5/2/2007 |
Q: Willard, I just noticed a question in which you told a person to roll over their old 401K to an IRA ...
A: Your questions are fair, but I am not sure about what you mean by a better than 4 performance. As ...
|
| Early Withdrawl | 4/30/2007 |
Q: I have about $130,000 in a employee sponsored retirement account. I would like to know what kind of ...
A: Your employer will be required to withhold 20%, which will be sent to the IRS. However, your total ...
|
| Early Withdrawl | 4/30/2007 |
Q: I have about $130,000 in a employee sponsored retirement account. I would like to know what kind of ...
A: In order to answer your question I have several to ask you. Is this a 401(k) or similar plan? Are ...
|
| Lost IRA account | 4/27/2007 |
Q: I invested in an IRA account back in 1977/78 and trying to located my account. What do I do?
A: I checked to see how far back a bank keeps check transaction records, and found that seven years is ...
|
| Using ira interest monies for retirement. | 4/14/2007 |
Q: Brumbaugh Im retiring in 3 years from a company i will have worked 30 years for.Im planing to ...
A: Your wife's retirement account will have to go into a separate IRA. The operative word is ...
|
| IRAs & employer retirement accounts | 4/14/2007 |
Q: If I put money into my employer retirement accounts (a deferred contribution plan and a 403(b) plan) ...
A: You may make a contribution to a Roth IRA just so long as your AGI does not exceed $110,000 per year ...
|
| IRAs & employer retirement accounts | 4/13/2007 |
Q: If I put money into my employer retirement accounts (a deferred contribution plan and a 403(b) plan) ...
A: You are correct in your understanding that having an employer sponsored retirement plan may reduce ...
|
| retirement and thrift savings plan | 4/12/2007 |
Q: I am retiring in 3 months with 37 years govt. service. My monthly annuity will be about $7,000 per ...
A: I would not encourage you to annuitize at this time. The monthly income is adversely impacted by ...
|
| IRA benefits? | 4/12/2007 |
Q: I was wondering what the benefits are for an IRA if I (single adult) make more than 100k? I do not ...
A: There would be no benefit to contributing to a non-deductible IRA, and tying up your money that is ...
|
| retirement and thrift savings plan | 4/11/2007 |
Q: I am retiring in 3 months with 37 years govt. service. My monthly annuity will be about $7,000 per ...
A: Please correct me if I am wrong, but it appears that you do not immediately need that $745 per ...
|
| rollovers | 4/11/2007 |
Q: I am going to quit my job of 14 years soon. I have a 401K and a profit sharing plan with the ...
A: You cannot roll a 401(k) plan directly into a Roth IRA. But you can do an institution to institution ...
|
| re: pension rollover and IRA | 4/9/2007 |
Q: As part of a global organization, the company I worked for had to close down. Any my employment is ...
A: My condolences for your loss of a job. The $50,000 can be rolled into a traditional IRA. Later, you ...
|
| 401k & TIRA | 4/6/2007 |
Q: With the tax deadline looming, I was wondering if one can make contributions to both the 401k AND a ...
A: He may be able to contribute to a traditional IRA, but that would be dependent on whether or not he ...
|
| IRA vs. 401k | 4/2/2007 |
Q: I work for the state of TX and therefore do not get a company match on a 401k. I am 23, married, ...
A: Because you are young and forward thinking, I expect that you will continue to save for retirement. ...
|
| IRA vs. 401k | 4/1/2007 |
Q: I work for the state of TX and therefore do not get a company match on a 401k. I am 23, married, ...
A: Your comment that you cannot do both suggests to me that you are in a relatively low tax bracket. ...
|
| husband's retirement | 3/29/2007 |
Q: Brumbaugh, Thank-you for your time. I do not know if this falls in the realm of your expertise, ...
A: If your husband were to wait to receive 100% of his Social Security monthly benefit, instead of ...
|
| withdraw from my sons 401k for his collage | 3/26/2007 |
Q: My son is changing jobs and he has a 401k there he needs to withdraw from his 401k to pay for his ...
A: He needs to change his 401(k) to an IRA. From there he can take a withdrawal for educational ...
|
| 401K withdrawl at age 55 | 3/24/2007 |
Q: I can retire with full benefits at age 55 (30 years OTJ). I thought I read somewhere that I can ...
A: Assuming that you are no longer with either of the firms that sponsored the 401(k)s, I recommend ...
|
| 401K withdrawl at age 55 | 3/23/2007 |
Q: I can retire with full benefits at age 55 (30 years OTJ). I thought I read somewhere that I can ...
A: I have believed that to be true. But it may no longer be the case. However, you might want to roll ...
|
| Financial Planning | 3/16/2007 |
Q: We are a getting married and would like some advice on how to save for our future. We would like to ...
A: I applaud your forward thinking. However I might make some suggestions that are inconsistant with ...
|
| IRA's and 403(b) Retirement plans | 3/5/2007 |
Q: Brumbaugh, for your insightful answers, particularly about the "tax qualified plans", because I have ...
A: One clarification regarding working past 70 1/2: If you were to be a 5% or more owner of the company ...
|
| IRA's and 403(b) Retirement plans | 3/5/2007 |
Q: Is it possible to continue investing into IRA and 403(b) plans after age 70 1/2 when I have to began ...
A: You can make no further contributions to traditional IRAs once you have reached the mandatory ...
|
| IRA's | 3/4/2007 |
Q: I am retired, 75 yrs. old. When I fill out my Fed. tax form they add my tax exempt (Muni.Bond) ...
A: Since you are retired you are ineligible for Roth IRAs. However, there is a way to resolve your ...
|
| 401K Early withdrawal | 2/23/2007 |
Q: I'm looking for a clarification on rules on withdrawing from a 401K plan or IRA penalty free before ...
A: It is my understanding that once you are 55 and no longer employed by the sponsoring employer you ...
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| 401K withdrawal | 2/21/2007 |
Q: I thought I had read that you can take out 401-K money to buy your home and there's no 10% penalty. ...
A: If you can qualify for a "hardship" withrawal, you would be correct. In order for it to be done, ...
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| solo 401 K | 2/17/2007 |
Q: How much can I contribute to solo 401 K ? I have 14000 income for 2006 on solo business. I have ...
A: I am not an expert in the maximums that can be contributed to 401(k)s, since I have learned that ...
|
| 401s | 2/14/2007 |
Q: My husband now qualifies to contribute to his business 401K. I'm wondering if it's what we want to ...
A: I appreciate your asking me these questions. I believe that you are right in questioning the value ...
|
| Must I recharacterize? | 2/7/2007 |
Q: I contributed the max amount to my Roth IRA in January of '06. I now realize I am over the income ...
A: It would appear that you would be better off contributing that money to a high surrender value life ...
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| 401 (k) | 1/27/2007 |
Q: Brumbaugh. I've been working for INTERSTATE BAKERIES CORPORATION (Jamaica NY, local 50) for about 9 ...
A: There are so many things to consider, that is impossible to make an accurate projection. One would ...
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| mother is 49 and wants to open a IRA account | 1/22/2007 |
Q: My mother is 49. She had a 401K with her old job but she kept taking loans and since she just left ...
A: I perceive that for your Mom we should keep your recommendations simply and risk-free. But before ...
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| 401k early withdrawal | 1/2/2007 |
Q: I am currently a 3rd year medical student. I am married and recently we had our first child. My ...
A: I commend you for your efforts. In all likelihood you will be paying minimal income tax, if any at ...
|
| Ira contributions | 1/1/2007 |
Q: Is it advisable to contribute more that that which is tax deferred in an IRA? I am over 50 so I ...
A: Putting more than the Federal maximum will result in a 6% penalty. In the future there will be ...
|
| roth ira | 12/24/2006 |
Q: I am on social security disability and would like to start a roth ira if i understand it correctly. ...
A: 1. A Roth IRA, just as with a traditional IRA can only be from earned income. Social Security and ...
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| 401k distribution | 12/23/2006 |
Q: I am a Delaware resident, so I would appreciate attorney names in either southern delaware or ...
A: There are several members of the Washington DC Planning Council that are in Arlington. Since this is ...
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| IRA | 12/22/2006 |
Q: Somehow your answer never reached my mail box. Sorry I didn't make myself clear. Let me phrase it ...
A: I have just learned that you are disputing my knowledge of the subject that you asked about. I will ...
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| Deferred Comp Plans | 12/13/2006 |
Q: I am wondering if contributing to def. comp. plans is always a wise idea. My research indicates that ...
A: You are right to doubt the effectiveness of a deferred comp plan. Not only do you lose control of ...
|
| Tax | 12/13/2006 |
Q: I just started participating in my job's 401k program and would like to know if my contributions are ...
A: Generally, yes. But there is now with many employers the opportunity to make your contributions into ...
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| 401K Distribution | 12/11/2006 |
Q: My husband worked for a contracting firm and his contract was cut unexpectedly in September due to ...
A: I cannot say whether this is legal or not. But I suggest that you get in touch with your state's ...
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| 401k & Taxes | 12/7/2006 |
Q: I am married. SS will pay $1650 a month. Other income will be 400 a month retirement . The 20000 ...
A: If it were not for the loans your adjusted gross income for the year would be only $14,700. Adding ...
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| 401K | 11/23/2006 |
Q: we used 40,000 of my husbands 401K to put down on a home for us, we were told if we did this we ...
A: Whoever told you that the money would not be taxed is not to be trusted with retirement account ...
|
| IRA vs 401K | 11/18/2006 |
Q: I am 36/single, I have left my job and have $80K+ in a profit sharing plan that I need to roll over. ...
A: A 401(k) is an employer sponsored plan. An IRA is an Individual Retirement Account that may or may ...
|
| 401k withdrawal | 11/16/2006 |
Q: My husband lost his job in March 2006, and he turned 55 in July 2006. While he is currently seeking ...
A: I am sorry that you are experiencing difficulty at this time. I pray that you will have good news ...
|
| 401k rollover | 11/15/2006 |
Q: I am 55 and recently lost my job. I have 200M in my 40lk at my former employer. What are best ...
A: If you were to transfer your account into a "pour-over" IRA, you could avoid the 20% withholding, as ...
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| i recently resigned for personal reasons from my employer! | 11/13/2006 |
Q: Willard, Recently i resigned from my employer for personal reasons. I am only 27 yrs old. I have ...
A: I appreciate your contacting me. One of my classmates in college was Jay Hockenberry. I hope that ...
|
| 401k to Roth IRA rollover | 11/13/2006 |
Q: Willard, I left my last employer 2 years ago to attend a graduate school. I have around $40k in ...
A: You cannot roll a 401(k) directly into a Roth IRA. You must first transfer your account directly ...
|
| WHAT TO DO WITH 401K | 11/11/2006 |
Q: I left out some information...he would like to retire at 55 and we have have a realestate investment ...
A: This modifier of personal information only amplifies the value of the strategy of my previous ...
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| WHAT TO DO WITH 401K | 11/11/2006 |
Q: ..my husband is 40 and i am 37...what about a sep ira for me even though i am not on our payroll? ...
A: If you have read my personal information, my recommendation probably won't come as a surprise. ...
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| IRA withdrawel | 11/10/2006 |
Q: I am 53, unemployed as of May. In March I become my mother's care giver. She's 81, early stages of ...
A: Under IRC 72(t) you can now start taking distributions based on your life expectancy and an AFR of ...
|
| WHAT TO DO WITH 401K | 11/10/2006 |
Q: ..MY HUSBAND HAS 185K IN A 401K ACCOUNT FROM HIS FORMER EMPLOYER. FOR THE LAST YEAR HE HAS BEEN ...
A: Most certainly you should remove the funds from the 401(k) and put them in an Individual Retirement ...
|
| 401K Withdrawl | 11/6/2006 |
Q: I have a 401K plan through a company that I worked for part time for 15 years and have recently ...
A: A lumpsum distribution is likely to be penalized. But by converting the 401(k) into to an IRA you ...
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| 401k termination | 10/27/2006 |
Q: My wife left the country a little over a year ago to visit family in Bulgaria. She was diagnosed ...
A: Your wife should not have lost her account. The correct procedure is for the company to have ...
|
| 401k & Roth IRA | 10/26/2006 |
Q: Q#1: I want to start a solo(self-employed) 401k for myself this year, take advantage of the catch up ...
A: Before I address your questions, I would like to know your age, income, and family status. It may be ...
|
| 412i & Defined Benefits | 10/20/2006 |
Q: In 2003 our Financial Advisor advised us and we signed up for a 412i and our contribution for 2003 ...
A: East, Your question is too difficult to answer without having more details. Is it possible for you ...
|
| early 401k withdrawl | 10/18/2006 |
Q: I am a 25 year old college student in WA. I quit my job about a year ago, and my wages for that ...
A: Roll the 401(k) to an IRA, if you have not already done so. From the IRA you can use the entire ...
|
| 401k | 10/12/2006 |
Q: I work with a company and have several friends that have 401k, the company stop contributing to ...
A: Yes. The only way that the employees can get control of their 401(k) accounts is to leave the ...
|
| Dividends off Stock in Roth IRA | 10/12/2006 |
Q: If you purchase stock with your Roth IRA and it pays dividends, do those dividends HAVE to go back ...
A: I apologize for the delay, but I wanted to be sure of my answer. So, I called one of my CPA friends. ...
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| When does rollover deadline clock really start? | 10/11/2006 |
Q: Brumbaugh, My wife had a 401k with a job she held until the end of 2000. She then moved several ...
A: My CPA has been out of town, so I apologize for the lateness of this answer. The 60 day window has ...
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| 401k retirement options | 10/8/2006 |
Q: I will be retiring at 56 yrs old and with 30+ yrs of service having eligibility of a defind pension ...
A: There are two obstacles to what you want to do: Federal Estate Taxes and Required Minimum ...
|
| 401k bank in bankruptcy | 10/4/2006 |
Q: I have/had a 401k plan with a former employer. I was about ready to transfer(rollover) the funds to ...
A: Presuming that you are in the US of A, if your account is a bank account, it should be covered up to ...
|
| 401K(s) and profit sharing accounts | 9/29/2006 |
Q: I just turned 65 last month and during my formative years had multiple 401K's. I don't know where ...
A: Krause, This is purely a guess. Check with your state's Department of Corporations to see if you ...
|
| New constrution closing costs | 9/26/2006 |
Q: I am 27 years old and have a little over $2K in my 401K. I recently quit my job to stay home with ...
A: You can avoid the Premature Distribution Penalty, by doing an institution-to-institution transfer of ...
|
| 401K Withdrawal vs Stock Sell | 9/21/2006 |
Q: So even though he is 60, he can't consider it as a distribution of his money; it has to be ...
A: This is another one of the reasons that I discourage participation in one's 401(k) beyond the ...
|
| 401K Withdrawal vs Stock Sell | 9/20/2006 |
Q: My husband really needs a new car. He is 60 and works for Boeing. Is it better to take money out of ...
A: It is my understanding that the only way that he can get money from the 401(k) while still employed ...
|
| Retirement Funds Draw Down | 9/16/2006 |
Q: If untaxed retirement funds are not needed for retirement living, are mortgage payments (invest in ...
A: I need more information. How old are you? How much is in the retirement account? How much is your ...
|
| 401K | 9/15/2006 |
Q: I took the distribution in early 2006 I am 36 years old.I took that distribution in 2006 i just ...
A: If you are filing as a single person, your Federal income taxes and penalty can be expected to be as ...
|
| 401K | 9/14/2006 |
Q: I WAS WORKING FOR A WALL STREET AND WAS LAID OFF IN EARLY 2005. I TOOK A DISTRIBUTION FROM MY FULLY ...
A: Whether you realize it or not, you were taxed and penalized for the 20% that was withheld. And ...
|
| min withdrawls | 9/11/2006 |
Q: what is the current formula for min mwithdrawls at age 70.5
A: The Required Minimum Distribution is the Federal table of life expectancy for your current age ...
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| Withdrawl while not yet retired. | 9/11/2006 |
Q: I am 63 years old. The company I work for has been purchased be GE. I am still working but now for ...
A: My CPA contact suggests that you transfer your previous employer's 401(k) into an IRA. Then withdraw ...
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| 401k / 72(t) / income stream | 8/20/2006 |
Q: I turned 55 7/06. I am considering retiring this December once I have my 30 yrs of service in with ...
A: Neither 72(t) nor Required Minimum Distribution regulations allow you to retain the principal. Once ...
|
| Withdraw Traditional IRA | 8/16/2006 |
Q: I invested $4000 in IRa to excape from paying taxes but I am going to buy my first home. I need ...
A: Since you are allowed up to $10,000 from an IRA to be applied toward the first time purchase of a ...
|
| Early IRA withdrawal | 8/16/2006 |
Q: I am in special situation. I am 53, was laid off last May. My mother had to move in with me, she's ...
A: I have good news for you. The current Applicable MidTerm Rate for a 72(t) distribution is 5.21%. ...
|
| 401k | 8/8/2006 |
Q: I`m not sure what you meant by the taxes on ss
A: Once your reportable income exceeds $25,000 (that includes one half of your Social Security income), ...
|
| 401k | 8/8/2006 |
Q: I`ve recently retired. My question is about my 401k. Since I`m retired do I still have to wait ...
A: You have heard correctly. I suggest that you get the entire account cashed-out before you apply for ...
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| 401k early withdrawl | 8/4/2006 |
Q: I am 55 years old and just found out that I will be taking approximately a 50% reduction in salary. ...
A: Unless you leave your employer, your funds are functional unavailable. However, should you terminate ...
|
| Early Withdrawl from IRA | 8/4/2006 |
Q: I have an IRA that I have been contributing to for a few years. I have never qualified for a ...
A: Since your contributions have always been after tax, you would be taxed only on the gains. In the ...
|
| tsp payouts before 59.5,ref: irs tax code,74t | 8/3/2006 |
Q: sir.. if after the five years and 59.5..at that time can you transfer the tsp balance say to an ...
A: You can do it either way, but I do not see any advantage in waiting. However, I do think that you ...
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| tsp payouts before 59.5,ref: irs tax code,74t | 8/2/2006 |
Q: as a federal employee eligibile to retire before 59.5 can and how do i set up payouts, i.e. (equal ...
A: If the Thrift Savings Plan rules are the same as those of IRAs, the code to which you refer is ...
|
| ira vs 401 | 7/25/2006 |
Q: I,m one of those many teachers who lost their jobs after katrina. I recently landed a job in a new ...
A: I recommend that you roll the previous plan into an IRA that can be converted when convenient to a ...
|
| rolling over 401 that was cashed out | 7/24/2006 |
Q: on June 7, I received an cash payment from my former 401 - i placed the check in the bank and how ...
A: I wish you had written me before you had closed out the 401(k). What you have done is taken ...
|
| Combining traditional IRA's | 7/17/2006 |
Q: I have two traditional IRA's. One has approx. $3K and the other $15K. My question is does it make ...
A: It really depends on whether there are administration expenses. For example: A particular bank was ...
|
| 40lK loans | 7/16/2006 |
Q: Im 58 and will be 59 in Nov.2006. Retiring in Aug 1st 2006 Can I pay the loan with the 60,000.00 I ...
A: Lydia, Do you have sufficient equity in your house or life insurance policy to borrow the $22,000? ...
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| 40lK loans | 7/15/2006 |
Q: Im retiring and have been saving 5% in the 40lK. I now have 60,000.00. I owe 22,000.00. Wasn't that ...
A: Your company is trying to help you. If you do not pay back the loan, not only will you have to pay ...
|
| 40lK | 7/15/2006 |
Q: If the 40lK is my retirement pension and I have a loan with my 401K. Why do I have to pay the loan ...
A: 1. Because the money that you were lent was that of the company that holds your 401(k). Your 401(k) ...
|
| 401K pre and post tax | 7/14/2006 |
Q: My husband and I both contribute the max to our 401k's and Roth's. If we want to invest more, is it ...
A: Unless you are relatively close to retirement and only recently have started your retirement ...
|
| 401k vs roll over IRA | 7/14/2006 |
Q: I have recently left an employer and am considering what to do with my 401k. I was thinking about ...
A: You are correct about the age 55 retirement for 401(k)s. As to whether this is an oversight, I don't ...
|
| IRA Early Withdrawl | 7/12/2006 |
Q: I am looking to close this account because I need the funds right now due to emergencies and I do ...
A: I don't know the answers to all your questions, but enough to deal with the immediate situation. In ...
|
| IRA Early Withdrawl | 7/11/2006 |
Q: I am contemplating closing out an IRA account $6500 that I have for emergencies. The account was ...
A: Amended Answer You will be taxed and penalized only on the value of the account as it is. If you ...
|
| Sheltering Retirement Payout | 7/7/2006 |
Q: I am soon to retire at 54 y.o.a after 33+ years with a county sheriff's department. Upon ...
A: Ultimately, except for what you contribute to an HSA, there is no way that you can avoid reporting ...
|
| AARP & Insurance | 7/1/2006 |
Q: I am a member of AARP, and since I have now retired, I wonder if I have the right kind of health ...
A: Shiels, I appreciate your question and concern. The fact is I also have to pay to get my name in ...
|
| Pension | 6/30/2006 |
Q: I recently changed jobs and took decided to take out my voluntary pension contribution which was ...
A: Ouch! By making after tax contributions to your IRA, you really complicated your situation. Could ...
|
| distribution from 401(k) plan | 6/29/2006 |
Q: Willard, Is it possible to take a cash distribution from a 401(k)plan and not have it be a rollover ...
A: I wish I could give you a better answer than you got from your employer. But s/he is correct. Do ...
|
| Combining IRA's | 6/29/2006 |
Q: My wife and I both have IRA's. They are both at Charles Schwab and I move the money around in ...
A: This is an example of how confusing qualified retirement planning can be. The only way that you can ...
|
| 401K partial distribution? | 6/23/2006 |
Q: I am 30 years old and recently switched jobs. Within the next few weeks, I need to rollover my 401K ...
A: I sure wish that you had talked to me before you bought that house. Is there any chance that you ...
|
| Protecting IRA | 6/15/2006 |
Q: My brother in law is heading into a long care nursing home in a matter of 3-4 weeks from now. His ...
A: An IRA is an INDIVIDUAL Retirement Annuity. Your sister will be entitled to whatever remains of the ...
|
| Financial Planning Calculations | 6/13/2006 |
Q: If you see a financial planner, part of what they do is to help you determine how much money you ...
A: I perceive that what you are really saying is that you want to avoid being manipulated by some kind ...
|
| Roth Iras | 6/12/2006 |
Q: i live in wisconsin close to hudson . ThanksHi My question to you is i'm thinking about opening a ...
A: Below are the five NAIFA members in your community. I have not talked with any of them. You may ...
|
| Roth Iras | 6/11/2006 |
Q: My question to you is i'm thinking about opening a Roth Ira up but i'm confused with what company to ...
A: More important than the company is the person you are dealing with. I suggest that you deal with a ...
|
| Self-employed 401(k) | 6/10/2006 |
Q: Willard, I notice that you usually advise against qualified plans. I am the owner and sole employee ...
A: First, I want to commend you for having a C-Corp. While I do not pretend to be an attorney, I have ...
|
| IRA Account | 6/9/2006 |
Q: I have an IRA investment account that I took for early retirement.I have taken money out for ...
A: Normally, one has unlimited access to his/her IRA upon reaching age 59 1/2. Prior to that age one ...
|
| covered or not covered | 6/2/2006 |
Q: I need to know more about the plan you were covered by and the amount of annual earned income that ...
A: It's good to hear from you. In light of what you have just told me, I highly recommend that you and ...
|
| IRA/401K | 5/31/2006 |
Q: What is the difference between a Roth IRA and a 401K. Do you think it is a good idea to have both?
A: A 401(k) is an employer sponsored retirement plan in which the employee's contributions have not ...
|
| covered or not covered | 5/30/2006 |
Q: according to pub. 590 on ira's page12 chapter 1. Benefits from previous employer's plan. If you ...
A: I need to know more about the plan you were covered by and the amount of annual earned income that ...
|
| Early Social Security Retirement and 457 distributions | 5/25/2006 |
Q: I am considering taking early retirement and using the early retirement social security provisions. ...
A: I have to admit that this expert gave you a wrong answer. The CPA that I had originally wanted to ...
|
| Retirement account appeal | 5/17/2006 |
Q: Willard, this will be a question like none other and not sure if you can answer or not or give a ...
A: You are right; I have had no other questions like yours. I would presume that since your company ...
|
| RETIREMENT PLAN | 5/13/2006 |
Q: Will Hi, I work for a large corporation and they have given me the choice to stay with the old ...
A: There sure is; but you will have to have someone knowledgeable about annuities to help you find ...
|
| 401k distribution at age 70 1/2 | 5/9/2006 |
Q: I just turned 69 years old this past March, and am starting to think ahead towards the 70 1/2 year ...
A: I thank you for contacting me for the right information. You said, "As I understand the program, I ...
|
| Rolling over Pension Plan and 401K to IRA | 5/6/2006 |
Q: William, My sister age 57 1/2 has become disabled due to an illness that will in the near future ...
A: I offer my condolences for what your family is going through. Transferring your sister's accounts ...
|
| 401K annual limit | 5/1/2006 |
Q: Brumbaugh: Hello. I have a question related to 401K for my parents. My father is 57 and my mother ...
A: I thank you for your compliment. As long as they don't exceed their employers' stated percentage ...
|
| 401k vs irs | 4/27/2006 |
Q: My husband has retired with over $100,000. in a 401k savings plan from his employer. He can keep it ...
A: Baer, Without question, it is in your best interest to roll the 401(k) account into a pour-over ...
|
| 401k | 4/19/2006 |
Q: If a company goes bankrupt, how does that affect my 401k? Do we lose all our contributions? ...
A: That depends on whether or not the 401(k) contributions were in the company's stock, as was the case ...
|
| Annuity | 4/15/2006 |
Q: I have raised this question due to a dispute with my math teacher about annuities. The questions and ...
A: Sorry! Your calculations are wrong. Your initial calculation in each case used a formula based on ...
|
| Retirement and your home | 4/4/2006 |
Q: I was wondering if the IRS allows a person entering retirement (let's say at 62 1/2) to use part of ...
A: The IRS would never be so benevolent. The whole purpose of the 401(k) is to encourage you to save ...
|
| paying taxes 1099r | 4/4/2006 |
Q: Is it true that you don't have to pay taxes on up to 10,000 withdrawn from an IRA for first time ...
A: That is a common misunderstanding, but, no, one must pay income tax on such withdrawals. What is ...
|
| Roth IRA withdraws | 3/25/2006 |
Q: I have a Roth IRA and I am so confused by the various rules for withdraw that I have read. I have ...
A: I can understand your confusion. When it comes to withdrawals the same exceptions regarding ...
|
| 401k limit | 3/22/2006 |
Q: First, thanks for your advise. My question is, I max out my Roth and contribute monthly to my 401k ...
A: I have never had this question before, and my answer may not be accurate, but I see no reason why ...
|
| Advantages of having a 401K AND a Roth IRA | 3/15/2006 |
Q: I currently have a 401k with the firm where I am currently working and contribute up to what my ...
A: Li, It looks like you are already following my advice. Good! I congratulate you on your ...
|
| finances in retirement | 3/13/2006 |
Q: I am helping to organize finances for my elderly parents-both in their eighties and no longer ...
A: Are there any other relatives that you might have to take into account as you organize their estate? ...
|
| Spousal IRAs | 3/12/2006 |
Q: I know spouses may fund their non-working spouse's IRAs, but I have an unusual circumstance. As a ...
A: I congratulate you on your ability to save your entire earnings. As you surmised, your eligible ...
|
| Annuities | 3/6/2006 |
Q: Now I am little hesitant to do anything with this new financial planner. He told me he has a masters ...
A: Did you see my typo? Before I got your follow-up I discovered I left out an s in salesmen. I hate ...
|
| Annuities | 3/6/2006 |
Q: I went to a financial seminar about 3 years ago. They talked about an annuity that was for a term of ...
A: What the first person was talking about is referred to as a "split annuity". But it is in fact two ...
|
| Simple IRA | 3/5/2006 |
Q: My husband worked for a company that had a "B - RR Series Back End Design" Simple IRA through ...
A: I thank you for your questions. He has been rightly told that he cannot roll the money into his new ...
|
| open a company funded retirement account | 2/27/2006 |
Q: What I am reading about is that when you start taking money out when you retire. If you die the ...
A: What was described to you was one of the income options that is available. There are others. You ...
|
| open a company funded retirement account | 2/25/2006 |
Q: My comany is giving us 1.00 per hour to put in some kind of retirement fund, with annual increases. ...
A: I hope that you can put your benefit into something like the Roth IRA. At $70 per week that would ...
|
| ira or 401k withdrawal or loan | 2/24/2006 |
Q: We have owned the house we are in for 15 years, so we would not qualify for that break. We have been ...
A: It would seem acceptable to attribute the $3,000 withdrawal to school expenses if you have the ...
|
| ira or 401k withdrawal or loan | 2/24/2006 |
Q: I need to know if I can cash out an IRA with about $3000 in it to use for purchasing a new home. (I ...
A: Assuming that neither you nor your wife have owned a home in the last two years, it would be better ...
|
| retirement income planning | 2/11/2006 |
Q: the scenario is this: married couple both have a combined retirement of $60,000 as pension and ...
A: Assuming 4% compounded monthly and a starting account value of zero for the wife and no further ...
|
| 401(k) | 2/9/2006 |
Q: I am a fellow 'expert' in 'telephony', as I work for BellSouth. Not that it matters, but just to ...
A: I have a problem with the word "all". I presume that you are putting your money into a 401(k). If ...
|
| 401 k | 2/5/2006 |
Q: Brumbaugh, I have 2 jobs which each offers a 401 k plan. I understand the maximum contribution ...
A: The most that you can contribute is $15,000 unless you are over age 50. In that case you can ...
|
| retirement planning and S corp contingencies | 1/26/2006 |
Q: Just realized a new problem with minimizing w2 income from the s corp I am half owner of. My plan ...
A: I appreciate your comment at AllExperts.com. Unfortunately I have not figured out how to access the ...
|
| social security | 1/24/2006 |
Q: as a 60 yr old who has contributed the max for more than 40 quarters and who has an s corp, I have ...
A: The current cap on income that will be taxed for SS is $94,200. Thus the most that you can pay this ...
|
| Better Administrator for my 412i Plan | 1/23/2006 |
Q: I am self employeed, and going to be 47 years old. I started 412i plan three years ago. I am asking ...
A: About the time that you started your 412(i) I attended a workshop on this concept put on at an ...
|
| Roth IRA Trustee Transfer | 1/16/2006 |
Q: Back in '97 I did a 401k rollover without much thought. After becoming a more educated consumer, I'm ...
A: Is your NYLIC annuity a variable or a fixed or indexed contract? Is it in a Roth IRA now? If not, ...
|
| Retired & Roth | 1/9/2006 |
Q: I received some capital gains last year on the sale of a house. Does this count towards earned ...
A: No, capitals gain cannot be considered earned income. I perceive that you are looking for a way to ...
|
| Retired & Roth | 1/9/2006 |
Q: I'm 75 & retired. My only income is from social security of about $12K a year. I pay income taxes on ...
A: I am surprised that you pay any income tax at all. No, just as with the traditional IRA, you can ...
|
| IRA for kid | 1/4/2006 |
Q: The 12 year old kid made about $2,500 cash last year doing odd jobs for the neighbors. That meant ...
A: Sorry for the delay. I just got a response from my source. There is no way to transact an IRA ...
|
| Equity release | 1/2/2006 |
Q: I am 74 years old going on 35, still working and very able, boxing coach every day. My home is worth ...
A: I am not familiar with that monetary symbol. Where are you? Willard Brumbaugh, LUTCF Since I have ...
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| Taxes on income from my IRA and investments | 12/19/2005 |
Q: In 2006 I will be receiving $1.526.00 per month from SS. I am single. My IRA has very nearly 100k. ...
A: Your monthly AGI can be $2,083 without paying income tax on your SS income. Your SS income ...
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| I BONDS AS PART OF A ROTH PORTFOLIO | 12/18/2005 |
Q: I am 61 years old, retired with a good pension, but still earning income from part-time work. I ...
A: George, thank you for asking. However, since I have chosen to not work with securities, I am not ...
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| 401K withdrawal | 11/22/2005 |
Q: I'm under the impression that at age 70 1/2 you need to start withdrawals, by the April of the year ...
A: Don't expect the Federal Government to ever make anything easy to understand. Your company is ...
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| 401K to Roth IRA | 11/19/2005 |
Q: I have a 401K plan that is going to be closed in the near future. I was thinking of rolling it over ...
A: These are very insightful questions. You are wise to consider rolling the 401(k) into a Roth IRA. ...
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| 401k | 11/17/2005 |
Q: The company I work for has an unmatched 401k. I stopped contributing a few months ago. I was ...
A: Some companies will allow you to borrow up to 50% of your 401(k) or $10,000 which ever is greater ...
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| acronyms | 11/17/2005 |
Q: What do "LUTCF" and "RFC" stand for behind an agent/broker's name?
A: Both designations are the result of having taken courses that enable the agent or financial advisor ...
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| 401 and tax | 10/7/2005 |
Q: Money invested in 401 plan is not taxed but when you withdraw it is considered as income and taxed. ...
A: You have discovered the not so obvious truth. For those that are successful in saving for ...
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| From IRA to 401k | 9/29/2005 |
Q: My Grandmother, a partner in a partnership, currently has an IRA. I believe that it would be to her ...
A: I need more information than what you have provided in order to favor a 401(k). There are several ...
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| 457(b) vs IRA: Federated Kaufmann | 9/28/2005 |
Q: Brumbaugh, I'm new to the working world. I have just started my internship in Medicine. Currently, ...
A: Because your employer is matching 2% of your salary, that is the amount you should contribute. ...
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| 401k | 9/15/2005 |
Q: What are the pros and cons of just throwing all my allocation into an index fund such as a fund that ...
A: That is a reasonable decision if you do not have Fixed or Indexed Annuities available. The pro is ...
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| Roth IRA for others | 9/5/2005 |
Q: Can you give me some links where I can read more about high equity life insurance policies?I'd like ...
A: I have not looked for such a link, since I am such a source. Better than a link, I can fax to you my ...
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| Roth IRA for others | 9/1/2005 |
Q: I'd like to open a Roth IRA for my working adult kid (who doesn't pay attention to retirement ...
A: I appreciate your desire to nudge your son in the right direction. In order for this Roth IRA to be ...
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| IRA contribution | 8/31/2005 |
Q: I stopped a job in March and have started another. I put about $3500. in the old 401 K plan and ...
A: I appreciate your comments. It is the legacy aspect of this process that makes it possible. I will ...
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| IRA contribution | 8/30/2005 |
Q: I stopped a job in March and have started another. I put about $3500. in the old 401 K plan and ...
A: Garcia, You are right about the impact of your severance. But I would never combine Qualified and ...
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| 403b, 457b, or what | 8/14/2005 |
Q: I just currently graduated from school and got a new job. they offer either a 403b or 457b. I am ...
A: Unless your company is matching, don't use either. You would be better off in the long run with a ...
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| 401k rollover | 8/2/2005 |
Q: Good morning Willard, I plan to retire the first of next year, my wife and I plan on using our 401k ...
A: Tipton, You'll need to roll your 401(k) into an IRA. Unless you are 70 plus I would not recommend ...
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| 401K | 7/14/2005 |
Q: I have a 401K plan at work for the last 4 years. I am putting 325 per week as my contribution. The ...
A: Please forgive me if this is a repeat. I thought that I had already answered this. I have never ...
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| 401K | 7/14/2005 |
Q: I have a 401K plan at work for the last 4 years. I am putting 325 per week as my contribution. The ...
A: Unless they have withdrawn the 401(k) offer, I don't think that they could refuse your ...
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| IRA vs 401K | 7/11/2005 |
Q: As I am 50 on Aug. 5, I was entitled to put $14000 plus $4,000 catch up into my 401K this year. ...
A: Your income is too great to be able to participate in either the traditional IRA or the Roth IRA. ...
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| IRA vs 401K | 7/11/2005 |
Q: As I am 50 on Aug. 5, I was entitled to put $14000 plus $4,000 catch up into my 401K this year. ...
A: I need some clarification: Are you married? If so, how old is your wife? What will be the actual ...
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| Roth IRA | 7/11/2005 |
Q: I understand that it is allowable to withdraw my contributions from a Roth IRA at any time. Is it ...
A: There is some confusion as to the "any time" information. I was told by an IRS representative that ...
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| help us | 6/13/2005 |
Q: Since we are basically bleeding here - what kind of professional do you suggest we REGULARLY enlist ...
A: I can't speak for either profession, since the quality of any individual's work is so tied up in his ...
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| help us | 6/13/2005 |
Q: John and I are 45 years of age. And we already did refinance - so how doe sthis afffect our ...
A: Trish, What is the current appraisal of your residence? Why weren't your car loan and credit card ...
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| help us | 6/13/2005 |
Q: Question - my husband did refinance and alreday it will take 30 years to pay off the house all over ...
A: Trish, Thanks for the rating. As long as you have sufficient equity to absorb the $38,000+ on your ...
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| help us | 6/9/2005 |
Q: My husband and I are in debt. This is the scenario for your input, which follows this intro. ...
A: From this I will be able to give you specific personal recommendations. However, I am in the process ...
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| IRA | 5/31/2005 |
Q: Mr. Brumbaugh: My reason is that a local credit union (Golden 1) is offering a 60-month CD ...
A: Wow!! That is an outstanding offer. As long as they allow the Required Minimum Distribution, I ...
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| IRA | 5/31/2005 |
Q: I have an IRA with Schwab, invested in stocks, from which I am now making annual mandatory ...
A: If you move the value in the Schwab IRA into a bank CD IRA, it will be an untaxed exchange. If you ...
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| 401K to Roth IRA? | 5/30/2005 |
Q: I started a 401K for the company I am currently working for four years ago. Two years ago they were ...
A: I strongly encourage you to immediately roll your old 401(k) account into a traditional IRA. This is ...
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| Time limit on IRA rollover deposits. | 5/25/2005 |
Q: In 2001, we intended to transfer the balance of my wife's personal IRA account held at our bank into ...
A: I talked with a local bank administrator about this to make sure I give you the correct information. ...
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| AIG annuity | 5/22/2005 |
Q: I specialize in Insurance Law, especially claims and lawsuits. I don't think that I explained my ...
A: It is my opinion that this lady should not be in the insurance business. In order to receive $2,000 ...
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| AIG annuities | 5/18/2005 |
Q: as a fellow expert I decided to run this by another one. I am selling my house and moving to Florida ...
A: AIG is a financially strong organization. It is one of my companies, but I have not yet studied ...
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| baby boom on retirement | 4/11/2005 |
Q: As the baby boom generation retires, how is social security and benefits going to change?
A: As you may be aware, there has already been a shift for getting 100% of the Principal Insurance ...
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| 401K / IRA | 4/4/2005 |
Q: I already found that information, the employer matches up to 6% and the max contribution is 30% of ...
A: I believe that you should take advantage of the 6%, but no more. The employer contribution is found ...
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| reverse mortgage | 3/28/2005 |
Q: Hoping you have knowledge of reverse mortgages?My wife and I (age 55 and 54 respectively), ...
A: Brierly, I thank God for the Reverse Mortgage. Once you and your wife are 62 you can negotiate ...
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| 401K / IRA | 3/27/2005 |
Q: I have a Roth IRA acct in mutual funds, but I haven't contributed to it for a while because I'm ...
A: You cannot, as far as I know, transfer a Roth IRA into a 401(k). Nor should you want to! The only ...
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| Retirement Fund withdrawal | 3/24/2005 |
Q: I'm under 59 1/2, and am still employed. I would like to take money out of my "AFTER-TAX WITHDRAWAL" ...
A: First, my apologies for our industry having given you bad advice. It is never a good idea to put ...
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| 457b government & TSP/FERS participation | 3/13/2005 |
Q: Can I participate in the TSP/FERS for govt employees and a 457b governmental plan at separate ...
A: I am not an expert in Federal retirement plans. Is this a shared participation plan, in which the ...
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| 412(i) Defined Benefits Plan | 3/13/2005 |
Q: umm, I guess I have to do a lot more research on this. If I retire at 54 with no income, how will ...
A: Sorry! I had assumed that you must have created some resource to provide income at retirement, ...
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| 412(i) Defined Benefits Plan | 3/12/2005 |
Q: I am a self employed retail systems consultant. I would like to preserve my earnings by saving as ...
A: The short answer is yes, but I'm not convinced that the outcome is going to be what you want. If ...
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| Medigap | 3/8/2005 |
Q: I'm a 68 year old college professor with plans of retiring in two years (May, 2007). I have ...
A: You may have two options. If you want the greatest freedom to choose your medical provider, you ...
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| 401k Withdrawal | 3/4/2005 |
Q: A number of years back my wife set up a 401k through American Express. This year she withdrew $5000. ...
A: Not knowing all the details, I'm guessing that she had some form of annuity. Typically annuities ...
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| Social Security | 2/23/2005 |
Q: ------------------------- Followup To Thanks for answering so quickly. I am not working, and ...
A: By waiting you will give up more than $44,000 in retirement income. It would take approximately nine ...
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| Social Security | 2/23/2005 |
Q: I am 62. I am planning to wait until 65 to collect Social Security. However, I have been told that ...
A: Frisone, It is likely that your benefit will be reduced, since your average income will be lowered ...
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| Long term care YES or NO | 9/12/2004 |
Q: My wife and I, at 50, can't decide if at a premium of $5000 per year is a good investment. Any ...
A: I do not do long term care insurance. That is not to say that LTCI is a bad idea. I simply have ...
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| Counseling against Qualified Plans | 9/9/2004 |
Q: Why do you counsel against qualified plans?
A: I have learned that those who successfully prepare for retirement are in their highest tax bracket ...
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| Roth IRA | 9/8/2004 |
Q: Last year I opened a 3,500. dollar Roth account with Folio on line traders.In that time I have added ...
A: This website says that I already answered this question. Couldn't have! I was at the NAIFA ...
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| 401K to a pension fund | 9/1/2004 |
Q: I have what is most likely a simple question. My husbands company was bought out last year and they ...
A: I appreciate your asking me for information. The old retirement plan should have been frozen by the ...
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| "consolidating" funds? | 8/24/2004 |
Q: Due to several job changes, I have small amounts of money invested in several different places. (A ...
A: By coincidence I initiated the roll-over of a TSP today. I have not had to deal with the combining ...
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| What is the best retirement strategy | 8/17/2004 |
Q: Having read your profile, I agree that Qualified tax deferred plans are not a good idea. Beyond a ...
A: Garrett, By eliminating life insurance from the available options you are left with your personal ...
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| annuities | 8/5/2004 |
Q: Good Day Our retirement plan rep. came by today to talk about annuities. They offer them, I was not ...
A: Annuities are a good option for accumulation. However, it is important to know what kind, and within ...
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| Fixed vs variable annuities | 7/21/2004 |
Q: what is your opinion on fixed vs variable annuities? Thanks Danny
A: Danny, Thank you for the question. Variable Annuities have the same potential for loss or gain as ...
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| RE: family estate planning | 7/20/2004 |
Q: I have recently heard about Barry Kaye's creative programs, and wanted to know if you can share how ...
A: What Mr. Kaye has done is leverage the superior untaxed mathematical advantage that exists only in ...
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| Early withdrawal | 5/20/2004 |
Q: I am buying a home and need 9,000 for a down payment. The only way to get this is to take from my ...
A: I appreciate the oportunity to answer your question. Please tell me more about your annuity. What ...
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| 401k | 5/19/2004 |
Q: wanted to take an hardship early withdrawal from my 401k plan. Wanted to buy a home. Will I get ...
A: Some employers will allow a loan on a 401k. The loan must be paid back within five years, and during ...
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| Arranging income.... | 5/16/2004 |
Q: My husband is on Social Security. I'm in a position where I can draw cash from savings to live on ...
A: I appreciate your asking me these questions. What you really should set as your maximum Adjusted ...
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| Combining IRA'S | 4/24/2004 |
Q: I have three different IRA'S acquired at different times during my life: a traditional IRA, ...
A: Birt, Unfortunately I am out of town till May 3rd. Therefore I am not able to give you an answer ...
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| Hi,
thank you for the response.... | 4/16/2004 |
Q: I am single, 28 years old, make about 45K a year. I contribute 10 percent of my pay to the company ...
A: You are wise to limit your participation in the 401k to the 3% that the company matches. This way ...
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| Hi
Thanks first of all for... | 4/14/2004 |
Q: I have a 401k plan at work that has a limited amount of investment choices (6 mutual funds, most of ...
A: Is your company matching? If so, how much? If your employer is not matching, your plan of action is ...
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| Annumities | 4/13/2004 |
Q: My question has to do with our fincial planner using a power of atty to pucharsw a annunity.I had ...
A: How did this person get power of attorney over you? In 35 years I have never had this situation come ...
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| 401K's | 2/19/2004 |
Q: Can i transfer all my 401K funds into real estate assets? I've heard that you can
A: Since I do not initiate 401(k)s, I am not sure of the answer. If on the other hand this is an ...
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| SEP-IRA rollover to 401k | 2/18/2004 |
Q: I opened a SEP-IRA with American Express back in 1996 when I was self-employed and contributed to it ...
A: The SEP is a qualified plan, but I strongly advise you to NOT roll that account into your new ...
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| Early retirement | 1/10/2004 |
Q: I work in a university and participate in their 403b pension plan. I have been thinking about early ...
A: YES!! 1. Most important - do an institution to institution transfer of your 403b account into a ...
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| 401(k) Rollover to IRA | 11/27/2003 |
Q: Brumbaugh: I recently left my private sector employer to begin working for state government. I ...
A: I commend you for having rolled your 401k into an IRA. This is wiser than having left it with your ...
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| 403 B | 9/13/2003 |
Q: Are 403 B investments good? I would need to invest the money in mutual funds, of which I am not ...
A: You came to the right person. The only people that benefit from putting into any qualified plan are ...
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| Roth Ira | 9/10/2003 |
Q: I am 48 years old and I maintain a Roth Ira with a major Brokerage Firm. I am now being told by ...
A: Yes, they can do that. However, this should not discourage you. You can have more than one Roth ...
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| retirement | 4/16/2003 |
Q: as a very small business owner when I set up a retirement plan, is it not better to just work for an ...
A: Yours is a complicated question. Or it may be a simple question with a complicated answer. Consider ...
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| retirement | 2/8/2003 |
Q: How are you? I move to US a couple of years ago and i want to make sure that i do my retirement ...
A: I am fine; thank you for asking. I hope you are as well! If your employer is contributing to the ...
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| 401K | 12/24/2002 |
Q: Brumbaugh, I'm 52 years old and have a 401K at my former job. I've been out of work since Nov. 2000 ...
A: Good news! And after all you've been through you need some. You can take all or part of your 401k ...
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| retirement options | 11/25/2002 |
Q: I am 40 years old, married with 2 young children. I am currently earning about $70,000 per year in ...
A: I thank you for being the first to ask a question of me since replacing Askme.com with ...
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