<p>I was thinking about rolling all of mine into my current one, but H. said that insurance covers only $300k. The benefit of having all 401k at the current 401k is that you do not have to withdraw from yor current one (mandatory minimum withdrawals after certain age). After you kicked out at certain age, then it does not matter. Taking all of it into consideration, I decided to do nothing. But we have to withdraw because our paychecks do not cover everything in our lives. Hard to evaluate how it will all look at the time I am kicked out by my current employer (and it is my last job, I will not be able to find another one, nobody will take me)</p>
<p>Required Minimum Distributions apply to ALL retirement accounts except ROTH IRAs while the contributor is alive, according to this IRS site. [Retirement</a> Plans FAQs regarding Required Minimum Distributions](<a href=“http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions]Retirement”>Retirement Plan and IRA Required Minimum Distributions FAQs | Internal Revenue Service). This includes the 401, 403, 457, and traditional IRAs. </p>
<p>Having all your funds in fewer places just means fewer places to remember to get your distribution(s) from. In practice, most places will remind you to take your RMD, because they don’t want angry customers who didn’t take RMDs and get heavy IRS penalties. </p>
<p>Depending in what your funds are invested in, the insurance may not be all that helpful. If you are like us and many others, there isn’t a lot of insurance against market decreases that can erode your principal, but can give nice returns. You can always have more than one account at each place. My understanding is that the insurance limit is applied to each account.</p>
<p>^ I read that the account that you are currently contributing along with your employer is exempt from the Min. Distribution. You can also roll all of your others to this account and they will becaome exempt (while you are working). However, the insurance is covering only $300k (but I have never checked this one, taking what my H. told me).
I understand the logic ro exemption. What is a point of min. distribution from the acount that you are still contributing up to 25% of your salary? That would make no sense.</p>
<p>A decade ago I rolled over 1/2 of my 401K to T. Rowe Price Health Sciences Fund IRA. The other half, I was talked into rolling it over to some variable annuity. Guess who has more than doubled? The latter of course.</p>
<p>^My current one is not even in mutual funds at all. I have it so I can accumulate a hefty company matching contribution. I do not trust what is going on with market, government is too involved and I have no trust in this institution.</p>
<p>Ooops I was in giddy land. I meant the t rowe px fund was the one that more than doubled. So typo in the previous post I meant the former not the latter.</p>
<p>My H’s funds could be put into various choices, including govt securities, stock market, index funds. We spread his funds out among the investments and it has grown to cover the RMD, so that it is larger than it was last year, even tho he turned 70.5 and had to start receiving distributions. </p>
<p>Please double check with HR and CPA about RMD, so you aren’t hit with big penalty. H had to take RMDs, even tho he was working. If you don’t take RMD appropriately, taxpayer gets HUGE penalty, (like 50% I believe).</p>
<p>Oh yeah, believe no IRA contributions allowed once you reach 70, but double check that too, as rules are known to change.</p>
<p>^Yes, you have to take RMD from the funds that are NOT 401k at your present palce of work. I can do RMD from my present and at the same time put in much more. So, I am not sure what is a point of RMD from the 401k that you are still actively contributing. 401K contributions and company matching are employee’s benefits, they are part of the contract between employee and employer, nobody can take it away.</p>
<p>
I do not know what the law is … but I can make a case for required RMDs even ones held at current employeers. Traditional IRAs and 401ks delay paying income taxes that are due to the federal government … and the RMDs exist to make sure those taxes are eventually collected. I could make a case that a taxer player should be required to make their RMDs wherever sheltered retirement money is held. Again, I do not know the law but to me requiring RMDs from current employeer accounts seems more consistent than exempting them.</p>
<p>Consistency is not the salient feature of the Internal Revenue Code. <a href=“http://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-(IRAs-vs.-Defined-Contribution-Plans[/url])”>http://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-(IRAs-vs.-Defined-Contribution-Plans)</a></p>
<p>Sent from my Nexus 7 using Tapatalk</p>
<p>it certainly is not … but I can dream</p>
<p>PS - the link is old and does not work</p>
<p>"Unless you are 1) still working, 2) still participating in your employers retirement plan and 3) own no more than 5% of the company, you must make your initial required distribution no later than April 1 following the year in which you turn 70½.</p>
<p>If you meet all the above conditions, you can generally delay taking distributions until April 1 following the calendar year in which you retire."</p>
<p>H retired 12/31/2012. He was just over 70.5 that year. He had to take a RMD that year in his 401K and his IRAs. He has been unable to contribute to his IRAs since turning 70, under IRS rules (tho he contributed to the 401K until he retired in 2012. He went back to work on in Jan 2013 but still had to keep taking out RMDs, in compliance with IRS and his HR department. We will have significant taxes for 2013.</p>
<p>op, I don’t know if you have been advised. But you can roll over all the 401k or IRA accounts to a self directed 401K or IRA account. The advantage of doing that is that the options to invest are lot better than company directed 401K, in that, you have few choices other than a big mutual fund or directions from the administrators. </p>
<p>In a self directed IRA or 401K, not only you can invest in the normal investment vehicles such as funds, stock and bonds, but also you can invest in gold coins, stamps and real estate. It is lot flexible and if you are an avid investor, you can gain considerably more than just invest in whats available under the company’s 401k.</p>
<p>For example, I had 500k in 2011 and within two years, I was able to more or less double my investment(within the retirement fund), but I did work full time for it.</p>
<p>But if it is not company’s 401k, then how employer will continue matching? My employer is matching significant amount. I do not know anything about IRA.<br>
So, the post #32 that I have copied from some RDM rules on Internet is NOT correct? Why this information there? it is NOT the first time I am reading it. The first time I was reading official government website.</p>
<p>I am talking about Previous company 401k accounts, once you are out of the company, they will never put in another penny in it and normally you cannot even borrow from it.</p>
<p>Also, you can create a company with yourself the only employee. It has to be an operating company, like you can sell some thing on the net on the side. If you do that you can create your own self directed Solo 401K account. The maximum contribution is based on SEP IRA rules, providing you have enough salary pull out of the company.</p>
<p>You can roll over all your previous company 401K’s into this account and invest in various instruments, even real estate. As any other 401K account, you can borrow from it paying yourself an interest like .5%…</p>
<p>Remember former company 401K’s are still under the control of the former company. Although rare, if the former company goes bankrupt, you can lose your 401K. I have transferred a few for both myself and my kids. Fidelity and Vanguard both make it easy. I like Vanguard for their low fee funds, Fidelity for their great website, investment options and free assistance.</p>
<p>One reason to keep a former 401K - If you retire at age 55 or later, you can access your money if necessary, penalty free. With an IRA you have to wait to age 59 1/2. You can set up a 72T with an IRA but than involves more planning and more work. Of course with both, unless it is a ROTH, you do pay Federal and State income taxes on your withdrawals.</p>
<p>"I am talking about Previous company 401k accounts, once you are out of the company, they will never put in another penny in it and normally you cannot even borrow from it. "
-You can roll any previous 401k account to your current employer’s 401k. </p>
<p>"55 or later, you can access your money if necessary, penalty free. "
-Not correct. Penalty free only at 59.5</p>
<p>"-You can roll any previous 401k account to your current employer’s 401k."</p>
<p>That is correct, OTOH, you have limited investment options in a company 401K plan, and some times, the company requires the employee to invest in that company’s stock, such as ATT!</p>
<p>You also can rollover the 401K into a Brokerage IRA.</p>
<p>If the amount is substantial, you’d better off with Solo 401K or Self directed IRA. Plan may have an admin. fee and a setup fee.</p>