Tag Archives: retirement accounts

Can I combine retirement plans from multiple employers when I retire?

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The short answer is yes. It takes a bit of work to do this though. You would need to contact the H.R. department from your previous employers and get their Rollover paperwork. Often, you can find out who to contact online. You will want to set up a Rollover IRA account into which to transfer these funds. Many companies will just issue a check to your new IRA custodian and mail it to your home address. This set up of a Rollover IRA is a service that we provide to many of our clients when planning for retirement. It is usually much easier to manage your retirement cash flow when all of the retirement assets are in one account.

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Money Matters

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I participated in the Orlando Sentinel Money Matters Hotline. I will be sharing some of the excellent questions I was asked by your neighbors. Here is one:

Q: I work full time and have a 401k as well as an IRA. What will I have to pay tax on when I retire?

A: At age 70.5 you will be required to take a Required Minimum Distribution. Your total qualified retirement account balances as of 12/31/ the year prior to 70.5 multiplied by 3.65% will be the first RMD. This is all taxable as ordinary income.

 

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