401K rollover

L1: 401K rolloverI”ll be retiring next August at 56 years, I have a company pension plan where I can take a lump sum or a monthly annuity. More than likely I”ll take the lump sum and go to a 72t program.
Can I rollover my 401K into an IRAand not make any withdrawls till 59 1/2, is it possible to continue to make contributions to my IRA and get any tax benefits since I am not making any withdrawls?2005-08-27 15:33, By: lou, IP: [69.227.131.72]

L2: 401K rolloverMAKE UP YOUR MIND WHAT YOU WANT TO DO.
On the one hand you are talking about taking SEPP 72-T withdrawals, but on the other hand you are asking about IRA contributions. Either you need the money to live on, or you don’t.
IRA Contributions can be made only if you have EARNED INCOME (from wages or self-employment), not from retirement plan withdrawals or investment income (interest, dividends, or capital gains).
Most importantly, if your employer’s plan permits it (as most plans do), you can start to take withdrawals from 401-K plans starting at age 55 if you separate from service, WITHOUT SETTING UP A SEPP 72-T PLAN. You would be under no obligation to take any amount, or any fixed amount, under the 401-K approach. You could increase or decrease the amounts as you need it. You would be ill-advised to roll over the 401-k to an IRA until after you are 59 1/2 if you THINK you might need money before reaching 59 1/2. If you areSURE you won’t need money until you are 59 1/2, then you could roll over to an IRA to get more diverse alternatives for investments, but who can be SURE we won’t need more money in the interim.
A SEPP 72-T plan should be your last resort, and it doesn’t sound like you are in that position.2005-08-27 15:59, By: dlztaxes, IP: [4.175.9.14]

L2: 401K rolloverIt sounds like you have both a defined benefit plan and a 401(k) plan.
If yes, then think about taking to the Plan Administrator about alternatives. You may want to look at withdrawals from the 401(k) plan for the period before age 59.5 and and if not needed,defer the decision on the defined benefit plan until after attaining age 59.5. 2005-08-27 16:15, By: Gfw, IP: [172.16.1.72]