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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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BEST OPTION FOR ROLL OVER OF MY 401K. I AM 63 LIVING ON SOCIAL

This answer was rated:

BEST OPTION FOR ROLL OVER OF MY 401K. I AM 63 LIVING ON SOCIAL SECURITY. LEAVING MY CURRENT JOB.

MyVirtualCPA :

Thanks for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

What specific advice do you need regarding your rollover?

MyVirtualCPA :

In terms of a rollover, there is no tax so there's nothing to consider from a tax perspective

Customer:

I AM LIVING ON A FIXED INCOME HAVE NO KNOWLEDGE AS TO ROLLOVER REQUIREMENTS FOR THE BEST OPTION FOR GROWTH AS I AM LEAVING MY CURRENT EMPLOYER AND NOT SURE OF IRA TRADITIONAL OR ROTH. THANKYOU FOR YOUR TIME.

MyVirtualCPA :

Okay .... for a 401(k) rollover, you would want a traditional IRA because there is no tax

MyVirtualCPA :

There is no tax until you take the money out of the fund

Customer:

IS IT POSSIBLE TO HAVE PAYMENTS WITHOUT PENALTY OR BEST TO LEAVE IT ALONE? WOULD IT BE BEST TO GO WITH MY BANK, INVESTMENT BROKER SUCH AS MERRILL LYNCH OR LEAVE IT WITH MY CURRENT EMPLOYER? I REALLY HAVE NO EDUCATION IN FINANCE.

MyVirtualCPA :

Yes, you are over 59.5 so you can draw whatever you want with no penalty

MyVirtualCPA :

Personally, at this stage in the game I would just leave it where it's at, because you're going to get roughly the same returns no matter where you put the money. You are in the drawdown stage where you will be taking from it

Customer:

I DON'T UNDERSTAND THE TERM DRAWDOWN STAGE?

MyVirtualCPA :

What that means is you will be taking money from the account to live on

MyVirtualCPA :

You're in retirement

Customer:

CAN TAXES BE TAKEN OUT AT THAT TIME SO THERE IS NO CONFUSION?

MyVirtualCPA :

Yes, your plan administrator can withhold taxes from your payment so that you don't owe at tax time

Customer:

IS THERE ANYTHING I HAVE NOT ASKED THAT I SHOULD BE AWARE OF?

MyVirtualCPA :

No, I think you're covered. You have no penalty and can take the funds whenever you want

Customer:

THANKYOU FOR YOUR TIME AND PATIENCE YOUR SERVICE IS APPRECIATED.

MyVirtualCPA :

I'm glad I could help. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

YES, I CAN DO THAT. HAVE A BLESSED FUTURE.

MyVirtualCPA :

You too.

Megan C and other Finance Specialists are ready to help you
Thanks LJ for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, and social security needs. It was a pleasure working with you today.

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