| What Do I Do With My Pension Money? |
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snapmacro
Member
Cash: $ 3.30
Posts: 15
Joined: 01 Feb 2007
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| What Do I Do With My Pension Money? |
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I quit my job of 6 years and only have about $650.00 in pension money coming back to me and I'm only 25. Is it like 401K where I have to pay a certain amount of tax on it and claim it?
Can I use it free and clear or do I have to reinvest it in another retirement account? Any pension-for-dummies article out there?
Thanks for the help!
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Thu Feb 01, 2007 11:15 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Location: Illinois
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You may be able to roll this over into an IRA. Check with the HR department. if so, that will save you the tax, and you'll still have the funds deferred.
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Feb 02, 2007 4:20 pm |
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snapmacro
Member
Cash: $ 3.30
Posts: 15
Joined: 01 Feb 2007
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| No HR Department |
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I guess I could just ask my former boss. I worked for a small family-owned business. But I think I will transfer it into my IRA. Thank you.
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Fri Feb 02, 2007 10:59 pm |
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efflandt
Senior Member
Cash: $ 80.45
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Location: Elgin, IL USA
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You may want to search www.irs.gov for "pensions and annuities".
When our company discontinued their retirement plan [sometime before they started our 401(k)] I rolled it into an IRA.
Someone I know who had pension money from a long time 2nd job trusted her insurance agent to handle it. But he did not properly deposit it in time, then his boss tried to correct that by transferring it again, then she may have tried to withdraw it when that was botched. In the end she totally lost it all in taxes and penalties. So make sure you know the rules and what is required before doing anything.
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Sat Feb 03, 2007 12:31 am |
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