New Visitors Privacy Policy Sponsorship Contact Us Media
Baby Boomers Family Green Home and Auto In Critical Condition Just Starting Out Lifestyle Money
- advertisement -
Bankrate.com
News & Advice Compare Rates Calculators
Rate Alerts  |  Glossary  |  Help
Mortgage Home
Equity
Auto CDs &
Investments
Retirement Checking &
Savings
Credit
Cards
Debt
Management
College
Finance
Taxes Personal
Finance

Tax Talk with George Saenz

Ask the tax adviser

Managing lump-sum payouts

Dear Tax Talk:
When I was 70½, I took a lump-sum retirement and rolled it over. I am still working, and each year I am given another lump sum for that year because my employer must still contribute to my retirement fund. The company tells me that this money cannot be rolled over, and I pay my taxes on this. Others tell me different. Please advise.
Re

Dear Re:
If you didn't retire at age 70½ and you're not the owner of the business, you should still be able to accumulate your pension funds in the employer's qualified plan or in an individual retirement account.

If the money is being paid to you, you should have your employer confirm with the pension-plan consultant why the funds can't remain in the employer's plan.

- advertisement -

It may be that the plan's governing document requires amendment to allow you to continue to accumulate past age 70½.

At a minimum, these funds should also be eligible to be rolled over to an IRA. However, because of your age, minimum distributions from the IRA are required.

-- Posted: Feb. 5, 2002

top of page
See Also
FAQs about 401(k)s
Managing your IRA distributions just got easier
4 reasons not to tap your retirement money
More tax adviser stories

Print   E-mail

Compare Rates
NATIONAL OVERNIGHT AVERAGES
30 yr fixed mtg 4.45%
48 month new car loan 3.77%
1 yr CD 0.89%
Rates may include points



Mortgage calculator
See your FICO Score Range -- Free
How much money can you save in your 401(k) plan?
Which is better -- a rebate or special dealer financing?
VIEW MORE CALCULATORS

BASICS SERIES
Tax Basics
Knowing how to file can save you money.
Filling out the W-4 form
What is my tax rate?
How to itemize deductions
Tax credits can lower bill
Death and taxes
Tax record-keeping

MORE ON BANKRATE
Income tax rates  
Tax forms  
State taxes  
Tax basics


- advertisement -

 
- advertisement -

About Bankrate | Privacy Policy/Your California Privacy Rights | Online Media Kit | Partnerships | Investor Relations | Press Room | Contact Us | Sitemap
NYSE: RATE | RSS Feeds |

* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.

Bankrate.com ®, Copyright © 2014 Bankrate, Inc., All Rights Reserved, Terms of Use.