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About David M Iannopollo
(Top Expert on this page)

Expertise
I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.

Experience
I have over 20 years experience in the business and financial world.

You are here: Experts > People/Relationships > Retirement Planning > Retirement Planning

Questions Answered By Expert David M Iannopollo
In Category Retirement Planning

Subject	Date Asked

IRA conversion after this massive stock market selloff	10/11/2008
Q: I am considering converting some IRAs to Roth IRAs because the nominal balance in the IRAs to be ... A: I believe your thinking is very sound on this matter. The advantages of a Roth should far outweigh ...
long term care	10/10/2008
Q: We have been paying to A.I.G. since 1995. My husband is 83 and has Parkinson's and will probably ... A: I'm sorry to hear of your husbands condition. You most likely have nothing to worry about. Insurance ...
401K distribution at 59 1/2	10/2/2008
Q: If I make a withdraw at 59 1/2 will I owe additional taxes, and is it reportable? Thanks for your ... A: You will be taxed as ordinary income. You will receive a 1099R at the beginning of next year so it ...
account	9/27/2008
Q: how do I get out of my pace multi account as it is loosing money, and if not why should I stay in? A: I believe the account you are referring to is a UBS account. I don't handle UBS products so I am ...
Getting Married and Retirement Planning	9/25/2008
Q: I am 26 years old and marrying a 39 year old. We are trying to figure out the best long-term ... A: Your welcome Rachel! I see what your saying but he will have access to the Roth funds as well. You ...
Getting Married and Retirement Planning	9/25/2008
Q: I am 26 years old and marrying a 39 year old. We are trying to figure out the best long-term ... A: Congratulations on getting married! I wouldn't concentrate heavily on his 401k. I would only ...
IRA Early Withdrawl	9/24/2008
Q: I recently took 14K out of mine and my wife's IRA account to close on a house but the house did not ... A: You have 60 days to return the funds to your IRA's without penalty or taxation. If you do not return ...
Can I Become A Part-Time Certified Financial Planner?	9/24/2008
Q: I plan on starting an acupuncture practice & would also love to learn more about investing & ... A: You do have to have a certain amount of experience in the field (3yrs full time or 2000 hours part ...
Pre-tax or after tax	9/23/2008
Q: For a number of years, my employer has been putting money into a TIAA-CREF 403(B) account, and I've ... A: Since you don't need a current tax deduction you would definitely be better off in an after tax ...
SIMPLE IRA and 401K	9/22/2008
Q: I own a company with a Simple IRA plan set up, but right now I started working for another company ... A: You are correct. You can have both plans as long as your contributions don't exceed $15,500 if you ...
cash mgmt funds	9/20/2008
Q: What is the difference in cash mgmt and money mkt funds? (no FDIC) ...as far as safety of funds? ... A: The money market fund you mentioned invests in short term bonds and notes issued by state and local ...
Defined Benefit Pension with old employer	9/6/2008
Q: My wife and I are both chemical engineers working for 2 different corporations. We are both 50 yrs ... A: I usually don't recommend that one leaves money with former employers, however it is possible that ...
IRA's	9/4/2008
Q: I want to invest in a traditional IRA for 10 years and not touch the money. I saw an investment ... A: Without really knowing what the product is it's hard to say. If this product is FDIC insured and ...
TSP	9/3/2008
Q: My uncle is terminally ill I have POA what if anything should I do with his thrift savings. Can I ... A: Yes, they will be taxed as ordinary income meaning it will be treated as if they had earned it at a ...
TIAA CREF, ING or AIG	9/3/2008
Q: I have worked for a state university in Louisiana for the past 15 years and chose TIAA-CREF as the ... A: In my opinion, the public makes far too much of a big deal out of investment expenses. Yes, it is ...
IRA	8/30/2008
Q: I have been told that I can purchase rental property with my IRA. Is this possible and how? ANSWER: ... A: You can use a Roth which would probably be a better choice if you were to do this. Again let me ...
IRA	8/30/2008
Q: I have been told that I can purchase rental property with my IRA. Is this possible and how? A: Yes, it is possible to put real estate in an IRA. This is not something that I deal with nor can you ...
401K	8/29/2008
Q: I am over 55 and the company that I worked for was sold. I still work the same job but now have a ... A: First, make sure that you are classified as working for a new employer and that technically you have ...
TSP	8/28/2008
Q: My uncle is terminally ill I have POA what if anything should I do with his thrift savings. Can I ... A: I'm very sorry to hear of your uncle's condition. You should be able to make any transactions as if ...
401K withdrawl	8/22/2008
Q: I am retiring before the end of this year and would like to use part of my 401K to payoff my ... A: Since you are leaving your employer in the year you turn 55 you will avoid the 10% early withdrawal ...
Roth 401(k) and RMDs	8/21/2008
Q: I take issue with an answer you provided on your site. Roth 401(k) accounts most definitely ARE ... A: You are technically correct. However you "can" avoid the RMD's by rolling over to a Roth IRA which ...
maximum contributions	8/21/2008
Q: I started a ROTH IRA this year before April 15th and contributed the maximum. Since then I also ... A: Your Roth contributions aren't tied to your state retirement plan in any way so you can contribute ...
Converting 401k to Roth (either 401k or IRA) while a grad student (with little income)	8/19/2008
Q: I am wondering if it would be wise to convert my 401k (valued at $100k) to either a Roth 401k or a ... A: Any amount you convert will be taxed as ordinary income. So if you converted $100k you income for ...
Roth IRA Dilemma	8/12/2008
Q: I have a roth ira with Oakmark funds. My fund is now closed to everyone but participating ... A: You can't rollover a Roth to a 403b and it would probably not be a good idea anyway. You should ...
401K, age 59 and changing jobs	8/10/2008
Q: I was 59 in July 2008 and am considering leaving my employer for another job, however the new job ... A: Since you are over age 55 and are leaving your employer you can use what is called the "separation ...
pension cash plan	8/8/2008
Q: I left my job last may and I had a cash account pension plan with the company that I was working ... A: Yes, taking the lump sum is the better choice. You can rollover to all three of the choices you ...
early withdrawl of IRA	8/7/2008
Q: Back in 2002 i was let go on a job- i could not draw unemployment and for the next 4 years worked as ... A: You really need to see a CPA about this. The rules for hardship withdrawals from an IRA are ...
Roth IRA Conversion	8/6/2008
Q: I worked for Lucent Technologies for 20 years and contributed both pre-tax and after-tax monies to ... A: The page I sent you doesn't contain any such section. The same rules that apply to converting non ...
Profit Sharing	8/6/2008
Q: My husband works for a privately owned company. It employs about 10-15 people. Rumor has it that ... A: I know that there are instances when employees may automatically become 100% vested when a profit ...
retirement?	8/6/2008
Q: David I am 49,in good health. The thought that I am closing in on retirement just hit me recently. ... A: I think there are many questions that you need to ask yourself: Will the difference between a full ...
Roth IRA Conversion	8/5/2008
Q: I worked for Lucent Technologies for 20 years and contributed both pre-tax and after-tax monies to ... A: Prior to 2008, you couldn't rollover from an employer sponsored plan directly to a Roth IRA but now ...
IRA	8/2/2008
Q: Was hoping you could help me. I am a single 67 y.o. man with no children and no living relatives. I ... A: Either the advisor you spoke with gave you wrong information or perhaps you misunderstood what he ...
IRA rollover to Roth IRA	8/1/2008
Q: My husband is 59 and I am 65 years old. We file a joint tax return, and our 2008 AGI will be under $ ... A: 1) You can move them all into one account. 2) No, this only applies to the amount converted. 3) ...
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: Your plan sounds fine, as long as you can swing it on his income. If you want to avoid taxes, you ...
Government Pension Offset and Windfall Elimination	7/31/2008
Q: Can you help me to understand how these differ? A: Here are two links to the social security website that explains these topics. Government pension ...
403b account vs IRA CD	7/31/2008
Q: Am I better off with my 403b TDA account at Prudential Insurance Co. or should I transfer it to IRA ... A: I personally don't think that FDIC insurance is a major concern. Insurance companies tend to be more ...
Scary economy and just started saving	7/28/2008
Q: I am a 20 yr. old. I am just now starting to save. I have $2000 in US savings bonds and I have set ... A: Before you begin investing, it is important that you have a supply of cash for emergencies. 3 to 6 ...
where to put my money?	7/25/2008
Q: I put my money in the first two banks, which is very dangerous, ... A: I really can't give specific investment advice in this forum and I don't have enough information to ...
ira hardship withdraw	7/19/2008
Q: i lost my job in march and i,am collecting unemployment now my savings is drawing toward an end. my ... A: Sorry to hear of your predicament. Any amount withdrawn will be taxed to you as ordinary income for ...
my retirement money gone!!!!	7/18/2008
Q: My x husband withdrew my money from our divorce which was held in his retirement fund at fidelity., ... A: Sorry to hear of your predicament. It sounds like your going to need to speak with an attorney on ...
ira's	7/18/2008
Q: Is there any safe way to save the money ($31,000) I have in IRA investments which keep going down. I ... A: IRA's can be converted into just about any investment including CD's without tax implications. I ...
Options at 59 1/2	7/17/2008
Q: Situation: will be 60 in Nov-08 & am finalizing divorce from my husband of 16 yrs. Have a 401k with ... A: Sorry to hear of your divorce. If you are not going to make new IRA contributions, you will have no ...
401k rollover with current loan	7/17/2008
Q: I took out a loan on my 401k and was fired from my job 1 week later. How do I go about repaying ... A: I'm sorry you lost your job. Unfortunately, if you don't repay the loan, it will count as a ...
roth ira	7/16/2008
Q: Husband and wife makes about 180K gross. What calculation do we use in order to apply for roth ira. ... A: If your AGI (adjusted gross income) is below $159k, you will be eligible to fully fund a Roth IRA. ...
Cash, bank loan or 401K loan	7/14/2008
Q: Wondering if you could help me think through a dilemma. I need 15K for a purchase. The decision ... A: The idea of having an emergency fund is so you don't have to borrow money or raid a retirement ...
PACE Multi retirement account	7/13/2008
Q: My husband has a retirement account (PACE Multi) type of account (IRA Rollover), which has been ... A: Unfortunately, we are in the midst of a down market. Most investors accounts have been losing money ...
403	7/6/2008
Q: I have 3 different 403 plans through my previous employers. I have been told by 2 of them that I can ... A: Different plans can have different rules. Unfortunately some 403b plans will not allow you to ...
retirement income	7/3/2008
Q: i am 67 years old, and all of my capital is sitting in bank accounts at 3% per annum. i would like ... A: While there isn't anything out there that will "guarantee" you a 7% return, there are still ways to ...
roth I.r.a. vs Deffered comp.	6/28/2008
Q: I have a Roth i.r.a9regions bank). i started on my own as well as a deferred comp. plan i started at ... A: Since you have already paid taxes on your Roth contributions, you cannot move it to your deferred ...
401k	6/27/2008
Q: would it be best to rollover my O.K.'d due to a retirement or take a lumpsum. Whichever is better ... A: If you take a lump sum distribution, you will be taxed as ordinary income on the entire amount. If ...
rolling over funds to a Roth IRA	6/27/2008
Q: I have Oppenheimer funds that are not qualified retirement accounts (regular non-qualified funds). I ... A: If this is a brokerage account and not a non deductible IRA you will owe capital gains tax only on ...
SEP to Hedge Fund	6/27/2008
Q: I have a SEP account and would like to move it to a hedge fund. Are there any fees or penalties for ... A: Usually qualified clients may invest IRA or ERISA assets in hedge funds; however, funds are limited ...
tax treatment of deferred compensation plan	6/20/2008
Q: My wife has a deffered comp. plan with her employer where she can put pre-tax dollars into it and ... A: That's a great question. If the pension is from work where she also paid Social Security taxes, it ...
Variable Anniuties	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: Without knowing about the annuity that you have purchased, it's hard to say whether this is a good ...
retirement asset allocation	6/11/2008
Q: We are ages 57 & 54 & are planning on working 8 more years.Our children are grown so we can start ... A: It will depend on how much you want to contribute. The current IRA contribution limit is $6000 ...
my 457b account	6/9/2008
Q: I have a 457b account thru the NY state govt. I am 56 and retired. I took a small amount out but I ... A: I usually recommend that when one leaves an employer that they roll over any employer sponsored ...
retirement asset allocation	6/7/2008
Q: We are ages 57 & 54 & are planning on working 8 more years.Our children are grown so we can start ... A: At a glance your portfolio seems pretty well balanced. The new funds you mentioned are index funds. ...
401k rollover and pension lump sum	6/5/2008
Q: I am 49 and about to be laid off from my employer of 24 years. I have a traditional pension and a ... A: Sorry to hear about your layoff. Your two plans will be separate. You'll need to check with your ...
roth 401-k	6/2/2008
Q: can a person who is self-employed open his own roth 401-k plan? does it require a TPA? also is there ... A: One can open a solo Roth 401k if they are self employed with no non-owner employees and consisting ...
Non-Qualified Plan vs. IRA/Roth IRA	6/2/2008
Q: I'm in my mid 30s. I normally contribute the max to my 401K plan. That's all I'm in a position to ... A: The major problem with maxing out a 401k is that you will most likely end up with a large taxable ...
Suggestions?	6/2/2008
Q: I am 55, retired military with a $1660/mo pension...taxable...and a non-taxable VA disability of ... A: Your welcome Ron! A single premium deferred annuity is where you only make one lump sum deposit and ...
Suggestions?	6/2/2008
Q: I am 55, retired military with a $1660/mo pension...taxable...and a non-taxable VA disability of ... A: It sounds like you are in pretty good shape financially. The Wells Fargo fund you have has not ...
Retirement (Tiaa-creff)	5/26/2008
Q: Mr. David, I have been separated going on 4yrs. My husband and I hoped to get back together which ... A: I'm sorry to hear of your situation. Keep in mind that I am not an attorney and cannot give legal ...
Roth or Traditional	5/24/2008
Q: My sister-in-law no longer works for a company and wants to move her pension plan. She also has a ... A: First, she'll have to check with the company holding her pension funds to see if the plan allows for ...
IRA distribution for first time home buyer	5/22/2008
Q: My wife and I are planning on purchasing a home for the first time. We'd like to put just my name ... A: That's a great question! Here are the rules: * The first-time home buyer cannot have had an ...
Any red flags in my retirement plans (I'm 30)	5/21/2008
Q: First off, let me say thank you for all of the great advice you and the other experts have made ... A: Your questions are pretty involved for a forum such as this so I'll try to keep this as brief as ...
Pension Plan Rollover to Traditional IRA	5/18/2008
Q: I have finally (after 15 years of chasing - underfunded) been notified of my options to draw on or ... A: In answer to your questions: 1. There is no limit to how much you can rollover so this will answer ...
Question on Roth conversion	5/12/2008
Q: I have a tax question on converting to a Roth IRA. Suppose I have two Traditional IRAs: IRA A that ... A: Your IRA's will be treated separately for this purpose. If you convert a non deductible IRA to a ...
Early 401K Distribution After Age 55	5/12/2008
Q: I'm looking for a clarification on rules on withdrawing from a 401K plan penalty free before age ... A: I checked out that link and that's what they are saying. I also looked through IRS publication 575 ...
Early 401K Distribution After Age 55	5/10/2008
Q: I'm looking for a clarification on rules on withdrawing from a 401K plan penalty free before age ... A: This is a direct quote from the IRS website: "You would not have to pay the 10 percent additional ...
Early 401K Distribution After Age 55	5/9/2008
Q: I'm looking for a clarification on rules on withdrawing from a 401K plan penalty free before age ... A: As long as you "separated from service" in or after you the year you turn 55, you may make a penalty ...
Late retiring boomer	5/9/2008
Q: Good morning Mr. Iannopollo. I am an extremely healthy 57yr. old female, in every sense of the ... A: Congratulations on becoming a teacher! Coincidentally. I have a sister in law in her 50's that is ...
retirement penalities	5/7/2008
Q: My husband is 55 and wants to cash in his retirement. I thought there was a 20% penality. Is that ... A: Here's an example: You take a $10,000 early withdrawal from a 401k. If you were in the 25% federal ...
early withdrawl from 401	5/6/2008
Q: can you withdrawl money without penalty if you use it for your childs college? A: If your 401k has a provision for hardship withdrawals then you can take one to pay for higher ...
retirement penalities	5/5/2008
Q: My husband is 55 and wants to cash in his retirement. I thought there was a 20% penality. Is that ... A: The penalty for early withdrawal is 10% if you are under age 59 1/2. If your husband has left his ...
Retiring next year	4/29/2008
Q: I hope to retire next after I turn 55. I have about $200,000 in my 401K and understand that at the ... A: It really wouldn't make sense to put tax free bonds inside of an IRA because an IRA is tax deferred ...
Early W/D of SEP	4/29/2008
Q: Dave, I am a Realtor in SW Michigan. As anyone can deduce, the market is a BIT soft. I am ... A: The problem with doing this is the amount that it is going to cost you in taxes and penalties. Just ...
Pension Rollover	4/29/2008
Q: I have finally set up a IRA account and am trying to roll over my pension from a previous employer. ... A: How many years of vesting service did you have? It says that if you have 5 years of vesting service ...
Retiring next year	4/29/2008
Q: I hope to retire next after I turn 55. I have about $200,000 in my 401K and understand that at the ... A: Any distribution you take now, will be penalty free under the "separation of service rule". This ...
Pension Rollover	4/27/2008
Q: I have finally set up a IRA account and am trying to roll over my pension from a previous employer. ... A: Unfortunately some plans can make you leave the money in the plan for a specified time even if you ...
SIMPLE IRA and 401K limits during this year	4/21/2008
Q: I have contributed partly to SIMPLE IRA during Jan-Feb of this year. Now I am taking up a job with ... A: If you are under age 50 you can contribute $15,500. If you are over age 50, you can contribute ...
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: The fact that your seeking advice instead of just "doing it" means you are thinking like a shrewd ...
401K withdrawal	4/17/2008
Q: Upon my husband's death two years ago, I rolled his 401K from our local utility company into a basic ... A: The IRA company withheld 20% for federal taxes as is the custom. What your actual federal tax will ...
cost basis of mutual funds	4/16/2008
Q: Since mutual fund companies don't supply cost basis information to the IRS, is it common for them to ... A: I'm not a CPA and do not give tax advice or prepare taxes so I can only give you my opinion based on ...
Closing a 401k and is it taxable?	4/15/2008
Q: My mom just died - she was 68. Last year she closed a $1,297 401k and got a dividend, less $260 ... A: I'm very sorry to hear of your loss. These distributions are taxable, but it would depend on how ...
IRA's	4/14/2008
Q: My wife was laid off a couple years ago. She is 54, and is not receiving a pension. We both invest ... A: You need to have earned income to contribute to an IRA. Since your wife has no earned income you can ...
rollover	4/13/2008
Q: I'm due to retire in November of this year and have both a 457 account and a 401K (actively ... A: Without more infomation I can't give you a specific answer. There are some things you need to ...
Traditional IRA	4/10/2008
Q: I have just turned 70 and working. Can I continue to put money into a traditional IRA until next ... A: You can only contribute to a traditional IRA until you are age 70 1/2. So you'll have about 6 more ...
estimated payments	4/10/2008
Q: my ? is should i pay estamated taxes or put more money away for retirment and is there a place where ... A: I really can't say what you should do without more information. As far as paying estimated taxes go, ...
401k issues	4/8/2008
Q: I have been in the process of trying to retrieve my 401k benefits now for almost 1 year. This is the ... A: I would suggest you call the local NY State Department of Labor nearest to where you worked. They ...
sep-ira	4/8/2008
Q: I have an account shown as a SEP-IRA that I want to move out of one family of funds to another ... A: Yes, that's true, however the present company may withhold 20% for federal taxes. This would mean ...
Roll over from a traditional IRA to a retirement plan	4/5/2008
Q: Mr. Iannopollo, In the very near future my wife, who works as a Guidance Counselor for a public ... A: I have never heard of a retirement plan allowing a rollover from an IRA. Most likely, your best bet ...
401K-IRA	4/4/2008
Q: I am 57. My company 401K does not permit withdrawls on a monthy basis if I retire, it is all or ... A: You can take withdrawals penalty free if you are over age 55 and "separated from service" for any ...
401K- Roth conversion	4/3/2008
Q: During 2006, my daughter worked for a university and contributed to a 401K. She also contributed to ... A: You do have to have earned income to contribute to a Roth. At the time this was done, you were also ...
Early Withdrawl	4/3/2008
Q: David~ I 25 and have recently switched jobs and forgot to rollover my 403(b) within the time frame ... A: I would try calling the company holding your funds and ask them if you can rollover your funds to an ...
Conversion to Roth	3/30/2008
Q: I am 62, wife 65, both retired. I have a traditional IRA worth $800,000 with a $200,000 tax basis. ... A: In a traditional IRA all of the funds are taxable upon distribution or conversion so there is no ...
annunity/cd	3/28/2008
Q: In 2005 my spouse took an early retirement and rolled over funds to an annunity. Because he was ... A: It depends on whether he took the annuity money as a distribution or rolled it over keeping it as an ...
1pointsolutions	3/27/2008
Q: David, I was told that the money is not insured since it was stolen. How can I find out more ... A: I had heard about the 1pointsolutions situation from an earlier questioner. I don't know how that ...
401K annuity	3/25/2008
Q: I'm 68 retired and I have an old 401k annuity from work decades ago that I have just left alone. The ... A: Moving your funds to an IRA will give you more control and more options as to where you'd like to ...
question about loans taken from retirement account	3/21/2008
Q: I am a 35 year old nurse and thinking of taking a new position. Problem is we have had to take out ... A: If you can give me the following information, I can give you a more accurate answer. Current loan ...
IRA Rollover	3/20/2008
Q: I have about 3500.00 in a 401K Money Market Account from a previous employer. I have terminated ... A: There is no need to create another IRA. You can rollover to your existing IRA if your happy with the ...
Terminating a Top Heavy 401k	3/17/2008
Q: Dave, Just this past year our 401k became top heavy, actually back in 2006, since it's a look-back ... A: Yes, you will have to bring the plan into compliance before closing it. However, there is a way to ...
Convert Traditional IRA to ROTH	3/10/2008
Q: Am hoping you can help. We are retired, age 60, with a traditional Ira which was rolled over. ... A: Without more specific information it's hard to say. Generally speaking, Roth IRA conversions are ...
roth ira for a minor	3/8/2008
Q: My 11 year old daughter earned 4800 dollars in 2007 helping her mother's solo business. No ... A: Your income won't impact your daughter's ability to start a Roth. Usually participant's in a 401k ...
roth ira for a minor	3/8/2008
Q: My 11 year old daughter earned 4800 dollars in 2007 helping her mother's solo business. No ... A: As long as she has enough earned income to cover the Roth contribution, many companies will accept ...
in-service withdrawals from 401(k)	2/25/2008
Q: Is it possible to add language to a 401(k) plan document to allow participants to use an in-service ... A: Yes this is possible and many companies are doing this to reduce the liability of holding employee ...
First Time Home buying and retirement money	2/24/2008
Q: My question is in regards to retirement money I forgot I had and recently received a statement for ... A: You would have to rollover the funds to a traditional IRA. You are correct that you cannot move it ...
401k loan and changing jobs	2/22/2008
Q: I took out a loan on my 401k to help pay the down payment on my house and I am now changing jobs. I ... A: I would just say your decision should be made on where your comfort level lies. If depleting your ...
401k loan and changing jobs	2/22/2008
Q: I took out a loan on my 401k to help pay the down payment on my house and I am now changing jobs. I ... A: You can only put $4,000 annually into an IRA. Even if you could put in $7k, I don't see how that ...
401k loan and changing jobs	2/21/2008
Q: I took out a loan on my 401k to help pay the down payment on my house and I am now changing jobs. I ... A: You would be better off paying back the loan. Would you pay 35% - 45% to borrow $7k? Giving it to ...
Transferring 403b into a traditional Ira or Roth	2/18/2008
Q: Currently I have two retirement plans that I have placed money into. The first is a 403b that I ... A: The regulations are changing for 403b's effective January 1, 2009. You may want to find out what ...
First Investors ISP	2/13/2008
Q: I am 26 years old, and i have a roth, and a 401k. I also have an ISP from first investors for 95k ... A: I did some research on the First Investors ISP and discovered that it is nothing more than a ...
FIXED ANNUNITY	2/5/2008
Q: I HAVE A FIXED ANNUNITY COMING DUE IN APRIL, IT WAS FOR 6 YRS.IAM 48. ITS WITH HARTFORD. MY QUESTION ... A: It's hard for me to say without knowing more about you and your financial situation. I would say ...
IRA Question	2/4/2008
Q: I'm 46 and self-emp. My biz is very small which nets under 50K a year. I currently get 4.7% on my ... A: Yes, a Roth IRA is a great way to save for retirement. You would avoid the taxes such as you ...
whole life vs. 401K	1/31/2008
Q: My insurance agent is suggesting that I discontinue investing in my 401K thru work and begin ... A: This is a great question. Unless you really need the tax deduction, a 401k without a match is not ...
Pension reduction	1/29/2008
Q: Is is wise for my husband to take a 50% reduction when he applies for his pension so that I will ... A: In general, when a pension requires a 50% reduction in order to provide a survivor benefit, it's ...
taking retirement savings to purchase land	1/28/2008
Q: I have a retirement plan from my former employer that totals around $60,000. With the volatility of ... A: I understand your concern with the volatility of the stock market, however, I'm not so sure I'd want ...
S Corp contributions to both her SEP-IRA and Roth IRA?	1/25/2008
Q: My wife runs her own business (it's just her) and will soon establish herself as a PLLC, with the ... A: Yes, she will be able to contribute to her SEP. She can also contribute to a Roth if your combined ...
social security	1/23/2008
Q: my wife and i are raising our grand daughter 3 years old, we are 60 and 57. we have tempory custody ... A: I'd like you to go to a website called infinitebanking.org. This will help explain the concept of ...
social security	1/22/2008
Q: my wife and i are raising our grand daughter 3 years old, we are 60 and 57. we have tempory custody ... A: I'm very sorry to hear of your situation. I believe this is more of a legal question and you may ...
Municipal Bonds	1/22/2008
Q: What is the value of investing in Municipal Bonds versus earning 3% interest every month in a ... A: The earnings on municipal bonds is generally free from federal taxes and sometimes state and local ...
Funds	1/21/2008
Q: With my company pension plan,we have the freedom to change the fund mix. I have never really given ... A: I cannot make specific recommendations in this forum, but I did take a look at that link. It appears ...
Variable Annuity	1/21/2008
Q: My wife and I recently met with a financial advisor who is looking to sell us a Polaris Variable ... A: It doesn't sound like your going to need these funds for 10 years, so this may be a good idea. ...
withdrawal from 401k after 59.5	1/20/2008
Q: I am 67 and still working. My employer does not allow me to withdraw any money as long I am ... A: Yes, unfortunately they can do that. It all depends on how the plan was written. You can ask your ...
RE: Social Security Death Benefits	1/19/2008
Q: As my husband and I are working on our retirement plan we have thought about a few questions ... A: That's an excellent question. I've done some research and have not been able to come up with a ...
401K borrowing	1/16/2008
Q: My wife and I would like to go from 2 incomes to 1, to do that we need to lower our mortgage ... A: You cannot gift qualified funds(i.e. 401k, IRA's,etc) to another individual. I also wouldn't ...
non-qualified retirement account	1/15/2008
Q: What are the benefits of a non-qualified retirement account, who is qualified and for how much, and ... A: Non-qualified accounts do not have to meet ERISA laws for favorable taxation. Being that these are ...
non-taxable distribution	1/15/2008
Q: I was investigating rolling over my 401(k) with a previous employer to an IRA when I noticed that a ... A: Since I don't know how or why you have non-taxable funds in your account, I really can't give you a ...
Retirement account mix	1/14/2008
Q: I currently have around 800K in retirement funds in 3 places. One is Fidelity and I intend to ... A: I really cannot give specific investment advice in a forum such as this. Even if I could, I would ...
Divorce and Retirement	1/12/2008
Q: I will be receiving a distribution from my ex-husband's retirement account through a QDRO. To avoid ... A: I'm sorry to hear about your divorce. I can't give advice about specific investments in a forum such ...
401K Loan	1/11/2008
Q: My husband just lost his job after 17yrs. He has about $35,000in his 401K - $14,000 of which is a ... A: I'm sorry to hear about your husbands job. You are correct that the outstanding loan balance will be ...
Terminating a 401K plan	1/10/2008
Q: I work for a very small company (22 employees). I am also the administrator of our 401K plan. We ... A: You should let your employees know that any outstanding loans will be treated as distributions if ...
Retirement plans	1/8/2008
Q: I am 47 with no pension plan, or savings. I have been working in the USA since 2003 so have no SS to ... A: Anytime the company is going to give you free money you need to contribute enough to get the match. ...
COMPANY CLOSING	1/5/2008
Q: Our company has been bought by another company and we are losing our jobs. We now have to decide ... A: Yes, you can rollover to an IRA without taxation or penalties. Any premature distribution(before age ...
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: I really can't give specific fund advice in a forum such as this, especially without knowing more ...
early withdrawal of IRA/taxes	1/2/2008
Q: I was heavily taxed this past year for a withdrawal I made on a Roth IRA back in 2005. I thought I ... A: Unfortunately I can't give you a definitive answer based on the information you've given me. How and ...
non-qualified 401k plan	12/27/2007
Q: I currently have a non-qualified 401k plan with an election to take a lump sum payment after I quit. ... A: Are you sure your not referring to a deferred compensation plan? There is no such thing as a non ...
IRA+401K+Pension?	12/26/2007
Q: I am 29 years old and just started a 401K through my company. I'm also about to put in $500 to get a ... A: Sorry I couldn't get back to you sooner as I have been traveling. You are making a classic mistake ...
IRA+401K+Pension?	12/26/2007
Q: I am 29 years old and just started a 401K through my company. I'm also about to put in $500 to get a ... A: I would say there is no such thing as overkill when planning for your future and retirement unless ...
DISABILITY RETIREMENT	12/24/2007
Q: I AM 55 WITH 200K IN MY WORKS RETIREMENT PLAN. I AM GOING OUT ON DISABILITY. I WOULD LIKE TO TAKE ... A: Merry Christmas Henry, If you were to take 200k out of your plan it would be taxed as ordinary ...
Gail's lump sum	12/23/2007
Q: I have been greatly helped by your advice in past questions. Gail and I are in similar positions, ... A: If you are over 55 but not yet 59 1/2 and have separated from service with your employer, you can ...
Early withdrawal as a short term loan across tax years	12/19/2007
Q: I understand that I can make an early withdrawal (pre 59.5) and re-deposit it within 60 days tax and ... A: You can do this, however, I don't know how it would effect your tax filing situation. You would need ...
mid life millionaire	12/19/2007
Q: 5br house no car notes my wife got 401 k about 8000 i went to school so we about 8000 in all in debt ... A: I really can't give you specific advice in a forum such as this, and I don't have enough information ...
401k Profit Sharing	12/18/2007
Q: David, I am leaving my current job of my own accord. Current company 401k has a profit sharing ... A: Generally speaking, if your employer has already been making contributions on your behalf, then he ...
rolling over ee bonds	12/12/2007
Q: My mom passed away recently and I now have about 50 ee bonds worth around 3000.00. They wont mature ... A: I'm sorry to hear about your mom. You will have to pay 3 months interest penalty if you cash them ...
retirement	12/11/2007
Q: I have been working at the same facility for 23 years and am fully vested with them. I will be ... A: Anything you withdraw will be taxed as ordinary income and there really is no way around it. You ...
IRA	12/7/2007
Q: I am 42, married....my wife has her own IRA from before we were married. I have none. Am I allowed ... A: If you were single, you would need to have earned income to open an IRA. Being that you are married, ...
converting 401k to an Annuity	12/3/2007
Q: I have been advised by a financial salesman to convert my 401k to an annuity. Would this be a wise ... A: It's hard to say without more information but I can discuss a few things. I would move your 401k ...
retirement	12/2/2007
Q: I live in GA with little homestead protection. I have $60K in vulnerable equity that I want to ... A: If you are talking about protection from creditors, moving these funds to an annuity may be a good ...
Disability Retirement	11/30/2007
Q: I am 50 years old. I became disable at 47. I currently have a 57,000 mortgage balance left on my ... A: It's hard for me to say without more info, but it would depend on a few factors which I don't know. ...
IRA withdrawl using substantial equal payment rule	11/28/2007
Q: My birthdate is 07/08/48 I will be 59 1/2 on 01/08/08. I started withdrawls from my rollover IRA ... A: I would say yes because the rule states that distribution must run for 5 years or until age 59.5, ...
Cashing out my 401K	11/27/2007
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ... A: Sorry to hear of your divorce. You'll get a check for the whole $50,000 which will be counted as ...
401k	11/27/2007
Q: You are most helpfull, I have some additional questions; assume I retire from my current company ... A: I' going to have to check on this one and get back to you. I'm not sure how your aftertax funds will ...
Question about annuities	11/16/2007
Q: Just out of curiosity. Is the following correct? All other things being equal, a lifetime ... A: It all depends on the rate of return that your index fund would be earning. A $200k single life ...
401k	11/8/2007
Q: You are most helpfull, I have some additional questions; assume I retire from my current company ... A: If you leave your money in the 401k after age 55, there will be no withholdings. Any amount you ...
Transferring 401k to IRA	11/4/2007
Q: I'm single, retired, aged 66. Presently, I have about $30,000 in my 401k plan. I'm wondering if ... A: I always recommend that people move their 401k's to an IRA when they leave an employer. You will ...
Equity Index Annuity	10/29/2007
Q: From what I understand, and EIA (Equity Index Annuity) is an annuity that credits interest based ... A: I guess the answer to your question would be both. The insurance company can invest the money as ...
real estate IRA ?	10/28/2007
Q: Lots of home out there for sale right now. I understand that I can transfer my Roth IRA and my IRA ... A: Yes, this can be done but I don't know of any major companies who handle this type of "self directed ...
401K	10/27/2007
Q: Excuse my ignorance, but, if my 401K (still with my previous employer, no additional deposits made) ... A: Actually I would say that your account has done quite well. According to what you've told me you ...
Lump Sum Payout of Defined Benefit Plan	10/27/2007
Q: I am 59 and will be receiving a lump sum payout from the pension plan at my job. I separated from ... A: Yes, you will be penalized on any amount you withdraw before 59 1/2. Therefore you will want to ...
457 contributions and early ss paybacks	10/26/2007
Q: I am a 61 yr old state employee considering retirement this coming June, when I will turn 62. ... A: No, your deferrals to the 457 plan won't be counted as income. If you are going to have a ...
401k 55+ withdrawls	10/26/2007
Q: David, if I retire and make withdrawals from my 401K, I am over 55, and I work part time or full ... A: As long as you leave the money in the 401k as you are taking withdrawals you will not be liable for ...
401K	10/26/2007
Q: My 401K is still with my previous employer. I am a State retiree, 64 years old and collecting ... A: You should probably rollover your 401k to an IRA. This will give you more control and more ...
401k Info	10/25/2007
Q: If I am collecting from a 401K can I also contribute to some other form of retirement account (ex: ... A: You will be able to earn additional income however in your case you may not want to use pre-tax ...
retirement	10/21/2007
Q: I am a 33 yr old single mom and I am trying to find a way to invest in a retirement fund of some ... A: You can open either a traditional or Roth IRA. The current contribution limits are $4k if you are ...
401 K withdrawl for first home	10/21/2007
Q: I am buying my first home. Can I withdraw some money from 401 K account to pay for the home ? Please ... A: The IRS regulations allow up to $10,000 to be withdrawn from an IRA without the 10% penalty if the ...
IRA	10/18/2007
Q: I previously asked this question of "Lawson" but I may have posted under person so here it is for ... A: Your sister needs to have a will in place to make sure anything she leaves behind goes where she ...
IRA	10/17/2007
Q: I recently left a job and my retirement 15,000. I want to know if I can roll over the whole amount ... A: Yes, you can rollover the entire amount. You'll need to find a company that you want to start your ...
Roth IRA rollover	10/16/2007
Q: If all goes well, I would like to retire early (before age 50), so am looking at ways of accessing ... A: Yes, you may convert your traditional IRA funds to a Roth in increments. Keep in mind, any ...
Investment	10/6/2007
Q: I inherited an IRA about 3 years ago and understand I cannot withdrawl from it without a 10% penalty ... A: Actually you can withdraw funds from the IRA before age 59.5 and not have to pay a 10% penalty. The ...
My retirement account	10/5/2007
Q: David, Thank you in advance for your advice. Financial stuff is way out of my expertise... I have ... A: You will need to know what tax bracket you are in. I will explain this in terms of federal taxes ...
401k	10/5/2007
Q: I recently bought a new car not knowing that 2 weeks later we would put money down on a new home. ... A: I don not think that this is a good idea at all. If you take a loan from your 401k, you will still ...
Should i collect interest	10/3/2007
Q: I am on Social Security & want to know what is best to do. Take money needed for Taxes ect. out of ... A: Before I can give you any type of answer, I will need more information, such as: What type of ...
employer moving away from 401k to simple IRA	10/2/2007
Q: I currently have 401k through employer. Employer is possibly moving to Simple IRA to save admin ... A: Having the SIMPLE will NOT limit your ability to contribute to a traditional or Roth IRA as long as ...
employer moving away from 401k to simple IRA	10/1/2007
Q: I currently have 401k through employer. Employer is possibly moving to Simple IRA to save admin ... A: You can rollover your 401k funds to an individual IRA if you like. You don't have to move it to the ...
Calculator	9/29/2007
Q: Where can I find a calculator that will calculate how long my money will last if I start with a ... A: Here is a link to a very simple calculator: ...
IRA	9/29/2007
Q: I have a question about retirement accounts. I am 32. Two years ago (at age 30) I started a ... A: Yes it is going to be very similar to your 403b. you'll need to pick an investment allocation such ...
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: I would suggest that you open a Roth IRA in addition to your 403b. The reason for having both is ...
401K loan	9/26/2007
Q: My husband took a loan from his 401K, which we have not yet paid back. Now he has taken a new job. ... A: He can "rollover" the "remaining" balance of his 401k to his new employer's plan or an IRA without ...
401K rollover	9/24/2007
Q: My nephew recently lost his job where he participated in a 401K. What are his options for rollover ... A: There is no need to worry. He can rollover his 401k to an IRA with no penalty or taxation. He can ...
Termination and stay outside US	9/23/2007
Q: i have $50K in my 401k. I am planning to return back to India. My current employer has office in ... A: The 401k company will automatically withhold 20% of any withdrawals and send to the IRS. You would ...
Self-Directed IRA	9/21/2007
Q: Greetings: I might want to set up a self-directed IRA (to purchase real estate). Can I do this ... A: Yes you can do this yourself but there are many things you would have to consider. First you would ...
Retirement investments	9/20/2007
Q: The last person I asked said zero, however, I do not believe his logic...I am almost certain I can ... A: If you are over 50 you can contribute $5000($4000 if under 50) to a traditional IRA. If you are ...
401k / Thrift Savings	9/19/2007
Q: I have two jobs, one of which I consider to be my permenant job and the other is a short term job of ... A: The $15,500 number represents the total of your contributions only. It does not include employer ...
401k Rollover	9/18/2007
Q: I currently have a 401k retirement plan through my current employer. However, I will be changing ... A: You are correct that a trustee to trustee transfer is the way to go. Just have your 401k company ...
Taxes	9/14/2007
Q: I am 69 and am looking for a way to shield my Social Security from being taxed when I have to start ... A: If you move your IRA into an annuity and keep your tax deferred status, you will still be subject to ...
ira, cd or roth ira?	9/13/2007
Q: Dave, It's me again. I guess what I need to know is which option is best for my situation. I am ... A: I can't really say for sure because I have no idea what your risk tolerance is, but most likely your ...
Early withdrawl of IRA for hardship	9/9/2007
Q: My husband and I moved back to CA last November and have been retraining for new careers so have ... A: Sorry to hear of your husband's disability. If this were your husband's IRA than you would be ...
401k loan default question	9/7/2007
Q: I find myself in bit a of a strange situation and am hoping to figure out how to keep myself from ... A: Sorry to hear of your predicament. I would suggest that you call the 401k company immediately and ...
cashing out 401	9/4/2007
Q: I am 56 on disability and terminated how can I cash out without penalty? I have to wait 90 days. ... A: Sorry to hear of your disability. You can cash out your 401k without penalty if you are disabled. ...
403(b) or 457(b)	8/30/2007
Q: I have been a state education employee in two states with almost 8 years of service. At my first job ... A: It's hard for me to say without more information but I guess it would depend on several factors. If ...
When can I rollover part or all of my 401K?	8/30/2007
Q: I would like to start rollover of part of my 401K with a company I still work for and am still ... A: You'll need to check with your plan administrator to see if your particular plan allows this. They ...
10% this 20% that	8/29/2007
Q: Hey Dave, I just realized that I am not in my 20’s any more when I turned 32, so now is the time to ... A: Short of rolling it over into an IRA and investing it where you want, there really is no way of ...
Annuities	8/22/2007
Q: As an Illinois resident, is an annuity policy having a non-dependent son as beneficiary protected ... A: It doesn't matter what state you live in. Annuities are not protected from creditors. Thanks for the ...
max contributions to traditional IRa and 401k before roth ira?	8/21/2007
Q: Should I try to put in the maximum contributions per year to my traditional ira and 401k and then if ... A: I can't say which would be better without more information, but generally, the younger you are, the ...
401K into Roth?	8/21/2007
Q: I am 34 yo who has finished medical training and am changing positions jobs. I have $30,000 in a ... A: Congratulations on finishing your training! Since you are planning and saving at a young age and ...
401K Closing account	8/21/2007
Q: I am a German citizen and worked in the US for about 2 years. I paid into a 401K account and would ... A: I would suggest you talk with an accountant in your country or perhaps contact the company who holds ...
Lump sum distribution	8/20/2007
Q: I will soon be eligible to receive a one time lump-sum distribution rather than a monthly pension ... A: If you take a lump sum distribution from you pension, you will have to be taxed as ordinary income ...
401k vs IRA roll over	8/17/2007
Q: If I am retired and have a 401 K acct is it better to roll over all funds into a IRA? A: Yes, I would definitely recommend that you rollover your 401k to an IRA. You will have more control ...
IRA vs. Life Insurance Policy - early withdrawl	8/16/2007
Q: I am permanently disabled and have a question regarding my IRA and my Life Insurance Policy. I ... A: I'm sorry to hear of your disability. I would keep the life insurance policy and make withdrawals ...
Retirement planning	8/8/2007
Q: David, I'm 58 y.o. and my wife is 56. We're late bloomers in all respects, esp. in the retirement ... A: The employee contribution limit for 2007 is $15,500 or $20,500 if you are over 50. The IRS has also ...
401K Rollover	8/8/2007
Q: I am within 2 yrs of retirement. When I retire I want to roll my 401K over into a very secure fund ... A: Once you rollover your 401k into an IRA, you can invest it in just about anything you like. I don't ...
401K tax question	8/3/2007
Q: I switched jobs, I have a check for a 401K rollover. I now need the funds to pay a gamblin debt(or ... A: The penalty and taxes are paid when you file your tax return for this year. The "20 tax" you are ...
401k withdrawal	7/30/2007
Q: I have about $4500 which has been sitting with a past employer for 13 years now. If I were to ... A: Qualified retirement account, such as a 401k, are "tax deferred" accounts which means that taxes are ...
Roth 401K	7/28/2007
Q: I start a new job and will now make $170,000 yearly. I am male, single tax filing status, 51 years ... A: I can't say for sure without more information, but most likely the Roth would be an excellent ...
investment mix for early retirement	7/27/2007
Q: I am 54 and my wife is 48. I have been unemployed since last year when my employer left town. I ... A: You should be able to take funds from your 401k when you turn 55 without penalty providing that your ...
investment mix for early retirement	7/26/2007
Q: I am 54 and my wife is 48. I have been unemployed since last year when my employer left town. I ... A: Actually, I think if you play your cards right you shouldn't have any problem. Having your health ...
Retirement	7/10/2007
Q: My husband has been terminated. And now he wants to take his Retirement out. At this point in time ... A: I'm sorry to hear of your situation. If you end up getting divorced, the court will issue a ...
recent firefighter tax break	7/9/2007
Q: In light of the new tax law changes,as a Firefighter, do I have to pay the 10% penalty for taking a ... A: I found the information on the changes as it effects the 10% penalty waiver for public safety ...
recent firefighter tax break	7/9/2007
Q: In light of the new tax law changes,as a Firefighter, do I have to pay the 10% penalty for taking a ... A: I found the information on the changes as it effects the 10% penalty waiver for public safety ...
where to start?	7/9/2007
Q: i'm a 32 year old who now has a permanent job with a reliable salary, guaranteed to increase with ... A: I don't have enough information to make any specific recommendations, but I can give you some ...
recent firefighter tax break	7/6/2007
Q: In light of the new tax law changes,as a Firefighter, do I have to pay the 10% penalty for taking a ... A: I am not aware of any new tax laws relating to firefighters involving the premature distribution of ...
401K Rollover	7/5/2007
Q: Have you ever heard of having to wait 18 months after leaving an employer to rollover a 401K Plan to ... A: Yes I have heard of this and have even seen plans that make you wait longer. It all depends on how ...
Premature withdraw IRA	7/4/2007
Q: I have several IRA accounts at different financial institutions, differed account numbers, but all ... A: To the best of my knowledge, this rule applies to each IRA on an individual basis. This would mean ...
401k transfer	7/2/2007
Q: About 4 years ago my wife quit her job to stay home with our new children. She accumulated ... A: You cannot transfer the funds in your wife's account to your 401k. Tax qualified accounts such as ...
401k, Pension & Profit Sharing	7/1/2007
Q: Can you please tell me what the difference is between a 401k,Pension & Profit Sharing I'm really new ... A: These plans are all tax qualified under the IRS codes. This means that special tax deferral rules ...
scary retirement future	6/25/2007
Q: please help me. A: When you go back to work and with your wife working you certainly have enough time to accumulate ...
401k as part of divorce settlement	6/22/2007
Q: Long story short, I will probably be getting about $400,000 from spouses 401K in divorce settlement. ... A: Yes, you can take a lump sum, however, any amount you take would be taxed to you as ordinary income ...
Parents Retirement	6/21/2007
Q: My mom is in her mid 50's and my step-dad is in his late 40's. She cleans houses for cash and he ... A: This is a problem that many people face. Without knowing more about their situation it is hard for ...
Creating earned income out of Capital Gains	6/19/2007
Q: I have a single member LLC that is an entity for trading equities. That is my full time job. I ... A: I believe that this would be more of a question for a CPA than for my someone in my area of ...
Defined Benefit Pension	6/19/2007
Q: I am in a defined benefit pension and qualify for retirement. I want to retire in 4 years (age 50) ... A: There are many retirement planning calculators on the web and some are more detailed than others. I ...
withdrawel to pay home	6/18/2007
Q: at 59 1/2 can I use a portion of my retirement to pay off a home? without penalty. A: I'm assuming that your talking about a 401k and if so, here's the scoop. You won't be penalized if ...
early retirement	6/16/2007
Q: I currently own some realestate, a total of 3 propertiee. I believe, I have close to 1 million in ... A: This is a hard question to answer given the limited info you have given me. I can tell you that ...
Banks vs Brokerage firms	6/16/2007
Q: I have inherited an IRA of about 50 thous. I have been educating myself as to the rules on this and ... A: I think what your best bet here would be to work with a professional adviser or planner. Banks in ...
72 (t)	6/10/2007
Q: I plan to rollover a portion of my 401k into my IRA and setup 72(t) SEPP (substantially equal ... A: Here is a good link to 72t info: http://www.moneymanagment.info/72T.htm Here is some good info on ...
SEP-IRA, house	6/5/2007
Q: I currently have $5800 in there. My fiance and I want to buy a house, but we have been unable to ... A: The IRS rules state that you can take up to $10k out of an IRA for a "first home purchase". I don't ...
Early withdrawal from SEP IRA for child's college	6/3/2007
Q: I have a SEP IRA established when I was self-employed. I now participate in an employer-based 401K ... A: You can take a penalty-free withdrawal from an IRA that is not a Roth IRA to pay certain higher ...
disability and spuses 401k	6/1/2007
Q: My uncle was recently diagnoses with cancer. He applied for disability once he started treatments ... A: I'm sorry to hear of your uncle's illness. I'm assuming your talking about Social Security ...
401k distribution	6/1/2007
Q: If I retire at age 55 can I start drawing on my 401k savings before age 59 1/2 without penalty A: Yes, you certainly can. I would suggest that you meet with a financial advisor or planner before you ...
SEP IRA withdrawals	5/31/2007
Q: I have a SEP IRA and I am 56 years old. I have been advised by my doctors to apply for Social ... A: I'm sorry to hear of your disability. As long as you can prove your disability, which it sounds like ...
Using an old 403b for my children's college	5/27/2007
Q: I have a 403b from a past employer. The contributions were 100% mine. It is worth approximately ... A: You cannot roll this directly into an account to use for your kid's college expenses and there is no ...
401k/profit sharing plan	5/18/2007
Q: Last October I was let go from my former employer. I was employed there just under 4 years. During ... A: This depends on several factors. If you made contributions to the plan by having it taken out of ...
retirement investments	5/15/2007
Q: I have around $400,000 invested in my IRA at Smith Barney and as I am 60 and plan on using that ... A: I don't know what type of account you have with your present company but I don't see how they can ...
IRA rollover to fixed annuity	5/11/2007
Q: When I asked the question about the direct rollover of my wife's $50,000 401K into a conventional ... A: Glad I could be of help! I think another thing you need to keep in mind is the possible taxation of ...
left my job	5/7/2007
Q: I have left behind a 401K and a pension fund profit sharing plan...I am fully vested... there is 60K ... A: Most likely you would be better off using T Rowe Price or Vanguard rather than your credit union. ...
fixed immediate annuity	5/6/2007
Q: I have appproximately $400,000 in an I.R.A. with not much other guaranteed income and am considering ... A: Sounds like this might be a good idea for you. However, being that your only annuitizing 25% of your ...
retirement investments	5/4/2007
Q: I have around $400,000 invested in my IRA at Smith Barney and as I am 60 and plan on using that ... A: Without more information, it's really hard to give you a solid answer as far as where you should be ...
Two Rollovers in a Year	5/2/2007
Q: In March, I rolled over an older employers 401k into a new IRA at a broker. My current employer ... A: You can rollover to the new firm or the broker handling your IRA with no problems. You can rollover ...
IRA conversion to an annunity	5/1/2007
Q: David, my wife and I made a $50,000 direct conventional IRA rollover from her previous employers ... A: Yes, you can rollover to an annuity inside of an IRA with no taxes or penalties. However I would ...
Limited by keyman comp on 401k	4/26/2007
Q: David, I am currently limited to $5k contributions to our 401k due to the key man comp rule. I am ... A: Investing in mutual funds is fine as you will only pay long term capital gains tax rates if they are ...
401k rollover	4/25/2007
Q: I am 46 years old and plan to retire in a few years. I am currently enrolled in a 401K plan @ work. ... A: There is no way that you can roll your retirement fund into your husbands. As far as your options ...
401k disability or hardship withdrawal	4/20/2007
Q: I was diagnosed with breast cancer in Dec.06 and have been out of work oh short term disability for ... A: I'm very sorry to hear of your health problems and financial predicament. I believe that what the ...
Military Thrift Savings Plan	4/20/2007
Q: I am retiring August 2007 and have about $80,000 in the Military Thrift savings plan. I am 49 years ... A: Congratulations on your retirement and thank you for your service to our country! You can leave the ...
Rollover an IRA into a SEP account	4/18/2007
Q: Can I rollover a traditional IRA into a SEP IRA and if so how? A: Yes you can rollover an IRA to a SEP. I am curious as to why you would want to do it. The only ...
rollovers	4/18/2007
Q: i recently was laid off leaving behind a 401K and a pension fund. My understanding is that I cannot ... A: You can't rollover directly to a Roth because your 401k and pension money has never been taxed. ...
Job Change, affect on 401k loan...	4/18/2007
Q: David, I am considering leaving my current company for a competitor. I have about $18k of a loan it ... A: Your absolute best move is to pay the loan off before you rollover. If you rollover the account ...
Thrift Savings Plan	4/17/2007
Q: I will retire on Aug. 3, 2007 at age 55 with 37 yrs. federal service. I have about $113,000 in my ... A: Congratulations on your retirement. Here are a few options you have available to you. You are ...
annuities	4/16/2007
Q: Good Morning, I worked for a large corporation that moved and I was vested in their pension plan. ... A: Whether you take a lump sum or not depends on several factors which you haven't stated, such as age, ...
Tax deduction for 403b contributions	4/15/2007
Q: First of all, thank you for making yourself available here. I participate in my employer's 403b ... A: I'm surprised that your employer wasn't taking your previous contributions pre tax. This sounds a ...
retirement	4/15/2007
Q: My wife is a postmaster and I am a postal clerk. I plan to retire in about 5 years under csrs. I ... A: Alot of this would depend on your age which I'm assuming is over 50, but I'll throw out a few ideas. ...
penalities on early distribution on a life joint annuity	4/15/2007
Q: This 2006 my husband I took out 13,000 in order to pay our real estate taxes. My financial advisor ... A: Most likely your advisor doesn't understand the taxation of annuities in regards to withdrawals. A ...
Distribution Error	4/12/2007
Q: I recently resigned from my job and filled out the paperwork for a distribution for my 401K. I am ... A: This happens to people all of the time, and unfortunately, your employer is correct. If you deposit ...
IRA with no deductions	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: That's a great question! Rather than use a non-deductible IRA, a variable annuity might be a better ...
Individual Roth 401(k) required distributions	4/11/2007
Q: I am 73, self-employed and just opened an Individual Roth 401(k) for 2006. Am I required to take a ... A: One of the great features of the Roth IRA is that there are no reqiured minimum distributions ...
rollover	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: Since this is money that hasn't been taxed yet, you cannot rollover directly to a Roth which is an ...
Early Retirement	4/9/2007
Q: My wife and I are both 45 and would like to retire at 55. Is there anyway to take money out of a ... A: If your at least 55, you can take money out of your 401k without penalty as long as you are no ...
my IRA account	4/9/2007
Q: I have had an IRA account with Smith Barney for many years. My portfolio has suffered since 2000. ... A: I would check with Smith Barney and go over your account history to see if there has been any ...
401K advice	4/9/2007
Q: I am planning to retire from my company at the ripe old age of 49. I have a significant amount of ... A: You are referring to the 72t early distribution rule. You will need to rollover the money into an ...
401K	4/6/2007
Q: JUST HAVE A QUESTION ABOUT EARLY WITHDRAWL. WHEN I GET TAXED THE 20 OFF THE BAT DO I THEN HAVE TO ... A: Yes, you still have to pay the 10% penalty at tax time. If your tax bracket is higher than 20% then ...
retirement vehicle	4/4/2007
Q: Is there such a retirement vehicle as an IRA or Roth IRA where the money is invested in stocks and I ... A: Absolutely. IRA's can be invested in just about anything. If you don't have any investment ...
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: I'm glad to see that you are thinking ahead at a young age. There are several reasons why the Roth ...
Retirement Planning	3/30/2007
Q: We are a couple 55 yrs old. Neither of us have any investments and we are beginners... reading what ... A: This is hard to answer without knowing more about you and your needs. There is no one correct answer ...
401 divorce distribution	3/28/2007
Q: I have recently received a distribution check from my ex's 401 (K) plan. since the divorce finances ... A: You will definitely avoid the penalty if you roll it over, however avoiding the 10% penalty may ...
401 divorce distribution	3/27/2007
Q: I have recently received a distribution check from my ex's 401 (K) plan. since the divorce finances ... A: You'll need to get that check rolled over into an IRA within 60 days and then take a withdrawal from ...
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: Without knowing more about you and your risk tolerance I'll have to be very general. I'm assuming ...
401(k) to TIRA rollover	3/7/2007
Q: TIRA is for traditional IRA. Sorry for the confusion. I do have other TIRA's and I have received ... A: That's funny! I've never heard anyone in my profession refer to them as TIRA's, but it makes sense. ...
401k	3/6/2007
Q: I am working for a corporate company that was sold. I did not lose my job. I am working for a new ... A: If you are under age 59.5 you will be penalized 10% plus the funds will be taxed as ordinary income. ...
401(k) to TIRA rollover	3/6/2007
Q: I am rolling over 401(k) from my former employer to TIRA. Fund is in cash and stock certificate. It ... A: If the taxpayer does not have any IRA to start with, and he rolls over the after tax money only, ...
401K/Traditional IRA early withdrawal	2/23/2007
Q: I'm looking for a clarification on rules on withdrawing from a 401K plan or a traditional IRA ... A: You can take withdrawals from your 401k after age 55, even if you left your job voluntarily or ...
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: If your employer's plan is a Simple IRA than you are not allowed to have a solo 401k at the same ...
Thrift Savings Plan Annuity	2/17/2007
Q: I'm a 46 yr.old female. My spouse is 66. I have been employed by the USPS for 21 years under the ... A: Sorry to hear about your disability. Without having more information I can't give you a specific ...
adoption	2/8/2007
Q: Is there any way to use or money from our retirement fund without penalties for the purpose of ... A: I know that this is not one of the standard provisions for a penalty-free withdrawal from an IRA or ...
Traditional vs. Roth IRA	2/2/2007
Q: I know it's been a while since my last question, but I thought you gave great advice and I had one ... A: Great to hear from you again! EE bonds are redeemable 12 months after issue. If you cash them out in ...
mother is 49 and wants to save...	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: You are correct in advising her to open an IRA instead of contributing to her employer plan with no ...
IRA early withdrawal	1/19/2007
Q: I currently have a sizable debt on credit cards (which I have stopped using) and I am expecting a ... A: An early withdrawal will be taxed as earned income plus a 10% penalty. So basically the 25k would be ...
IRA	1/12/2007
Q: I have a "self directed" ROTH IRA. I want to invest in a CD with a company called CPS inc. The web ... A: A custodian is the entity that looks after your account and invests it according to the plan that ...
retirement	1/9/2007
Q: I am 58 my wife is 52. We both plan to retire from the postal service. I am csrs and she is fers. We ... A: I'm going to assume that this CD is not part of a qualified retirement plan, so it is after-tax ...
401K rollover	1/9/2007
Q: David, I changed jobs and want to rollover my 401K account to my new 401K plan. I could leave my ... A: I never recommend for people to leave money in a 401k after they terminate employment. You can ...
401 k rollover with outstanding loan	1/6/2007
Q: good advice Dave. 1400 bucks, yikes! Is there any "significant" advantage to rolling the money to ... A: Some of the advantages of putting the money into an IRA rather than in your new 401k are: 1. You ...
401 k rollover with outstanding loan	1/6/2007
Q: I recently changed jobs and now I have to decide whether to roll my 401k over to my new job's ... A: If you don't pay back the loan, it will be treated as a distribution. That means that the 4k will be ...
Purchasing additional Service Credit Years	1/5/2007
Q: My pension plan has an optional plan for purchasing additional service years. I am planning to ... A: Well let's do some math. For comparison purposes, I'll use the assumption that your pension payments ...
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: You would be penalized 10% for early withdrawal plus taxed according to your tax bracket. So yes, ...
401k	1/2/2007
Q: I'm retired. When I was 62 I started withdrawing $800/mo from my 401k. I was told when I did this ... A: I just found your question in the question pool. It sounds like you may have taken some type of ...
ksop	12/28/2006
Q: i don't understand very much about ksop can please explain it to me. some of my question are: i ... A: A KSOP is basically a 401k where your employer will match your contributions with company stock ...
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: Unfortunately you won't be able to open a Roth. To be able to open a Roth you need "earned income". ...
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: If social security disability is your only source of income you would not be eligible for a Roth ...
457 B	12/23/2006
Q: My wife has a 457b retirement plan She is retired. My question is in the event of her demise can ... A: I always advise people to roll over their employer plans to an IRA as soon as they retire. You will ...
IRA vs 401K contributions	12/23/2006
Q: I am single and I received a deduction for all $3,000 of my Traditional IRA deductions last year. I ... A: Depending on your income you may be correct. These are the income limits for deductibility of a ...
Social Security	12/20/2006
Q: Mr. Iappollo: I read somewhere a very long time ago that citizens are able to demand a lump sum ... A: The only instances I know of that would facilitate a lump sum from SS are the surviving spouse death ...
early withdrawl of retirement funds	12/20/2006
Q: I am 47 years old and going through a divorce. I have 168K in my 403b. In exchange for no alimony, ... A: Sorry to hear about your divorce. One of the hardship exemptions is for first time home buyers so I ...
retired and now building debt-isit time to tap my 457B?	12/14/2006
Q: i have a 457b and im retired. I have no mortgage, but I do have a home EQ loan(tied to prime). I owe ... A: D., Neither of your scenarios is ideal but I will explain what you will be facing. If you tap into ...
401k withdrawl	12/13/2006
Q: Our company is closing down. I have 401k and I am wanting to use my funds to buy farm equipment for ... A: I really don't believe that this is allowed but perhaps you could call your local Farm Bureau and ...
401K Loan Question	12/12/2006
Q: I have 2 loans from my 401k plan that I am in the process of paying back, total outstanding is about ... A: That's a very good question and one that I get alot. The double taxation that you mention is not ...
Traditional vs. Roth IRA	12/7/2006
Q: David. We appreciate your help. As for our ages, we are both turning 27 this February so we've got ... A: Actually, I missed something when I was answering your question and you are correct. If you were ...
401K Early Withdrawl	12/7/2006
Q: I have recently moved onto a new job and am looking at rolling over my 401k but am now however ... A: Keep in that the 401k provider is just withholding the standard 20% that they do on all withdrawals. ...
Traditional vs. Roth IRA	12/6/2006
Q: My wife and I want to open IRA's this upcoming year and are not quite sure of our best option. We ... A: Of course not knowing your ages and other information I can only give you a generic answer but it ...
HSA administrated by 1pointsolutions	12/5/2006
Q: Just a follow-up on the 1 Point Solutions HSA. 1 Point Solutions CEO, Barry Stokes, is in jail. My ... A: Wow, I'm so sorry to hear that! I did a little research and found that are are certain circumstances ...
Hardship early withdrawl of 401K	12/4/2006
Q: I'm being put into early Disability Retirement form the US Railroad Retirement Board. Is it ... A: You would have to check with your plan administrator to see if you would qualify for a "hardship ...
401K rollover to SEP-IRA	12/3/2006
Q: I have a 401K from a previous employer. I'm currently self-employed, and thinking about opening a ... A: Yes, you should be able to roll the 401k into the SEP, however I would check with the plan ...
HSA administrated by 1pointsolutions	11/20/2006
Q: I have had an HSA for a little over 1 year. I didn't know until days ago that my monthly deposit ... A: You won't lose your money but I guess you have to find out where it is. It sounds like it was in a ...
Roth IRA 5-year requirement	11/20/2006
Q: I am over 55. If my Roth IRA account is over 5 years old, does that make any contributions and ... A: Contributions are always tax free, however the 59 1/2 rule still applies. Rather than go into great ...
Higher Educ Expanses and IRA	11/16/2006
Q: You are not 59 and 1/2 yet, but you need to take a distribution from your trad IRA (rollover) to pay ... A: You can withdraw trad IRA funds to be used for higher education cost for you, your spouse, children, ...
pension plan	11/12/2006
Q: can the funds in a pension plan be rolled into a ira or 401k at any time A: Unless you have left the employer, probably not. Some pension plans won't even allow a lump sum ...
Social Security	11/10/2006
Q: My wife an I are both 61. I have 40 years of employment so my Social Security benefits are ... A: I believe that if you retired at 66, than your wife would be eligible to receive half of your ...
401-K Mortgage?	11/10/2006
Q: I own an apartment building. Can I fund a 2nd mortgage for the building t