Combine 401K & Pension Lump Sum Payment?
L1: Combine 401K & Pension Lump Sum Payment?I am 50 years old (dob 4/17/67) and recently ended employment. I’ve already rolled over my 401K into a new IRA account and will also be rolling over a pre-tax Pension lump sum payment in a couple months. My plan isto set up a 72(t) SEPP once I receive the lump sum payment.
Can I roll the 401K and Pension lump sum payment into the same IRA account for the 72(t), or do I need two separate IRAs and two separate 72(t)s? 2017-04-23 17:29, By: MRMCA, IP: [220.127.116.11]
L2: Combine 401K & Pension Lump Sum Payment?You can either roll the plans into the same rollover IRA and your SEPP would be calculated on the total balance, or before you started the SEPP you could partition that IRA into two IRAs, with the smaller one used for emergency needs and the larger one used for the SEPP. This decision is made after determining the annual distribution you need and also the amount of your distribution if you used one combined account. You can then determine how best to split up the accounts if you want to.2017-04-23 19:05, By: Alan S, IP: [18.104.22.168]
L3: Combine 401K & Pension Lump Sum Payment?Great, thanks Alan. Looks like I have someoptions to consider.2017-04-23 20:36, By: MRMCA, IP: [22.214.171.124]