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My wife just retired and we will both be relying on social security and my work related pension to live on. She amassed approximately 10K in her work retirement 401K. The question is...should she leave the money in her 401K to increase or decrease based on the performance of her retirement fund investments or should she withdraw ( subject to a 20% withholding of funds for taxes) and invest in something else like T bills or an IRA? Thanks
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You should NOT withdraw the money. You should do a ROLL OVER to an IRA. If you do a roll over, there will not be any taxes or penalty.Originally posted by auckr View Post
Call the company you want to use for the IRA and they can handle it all for you. Vanguard, Fidelity, and T. Rowe Price are the 3 top companies in the field.Steve
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Personally, I would roll it to an IRA with a low-cost custodian, such as Vanguard or Fidelity.Originally posted by auckr View Post
Nothing will be withheld if she does a direct rollover. Call the custodian of your choice and ask them to assist with the paperwork.
Within the IRA, she can invest the money however she pleases.Comment
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