penalty or no penalty

L1: penalty or no penaltyI would like to begin by saying I really appreciate this forum and have learned so much. I will have my 30 years service in 2007. This will qualify me for full pension benefits in my qualified pension plan. I plan to take the lump sum option and roll it to anIRA. I have a 401k plan that I want toroll also. I will be 52 in 2007. My question is this : If I choose 72t and roll these together will I be penalized on either? I have gotten information that says yes and no. Any advice would be very helpful.

2006-05-17 13:07, By: Mikie, IP: [67.72.98.45]

L2: penalty or no penaltyHello Mikie:
You can certainly roll your 401(k) to an IRA. Presumably your employer is offering you the lumpsum equivalent of your periodic pension from a 401(a) qualified plan so that also can be rolled over to the same or different IRA.
No penalties on anything.
TheBadger
wjstecker@wispertel.net

2006-05-17 14:06, By: TheBadger, IP: [66.109.211.254]

L2: penalty or no penalty
Although it”sbeen said many times many ways …
Be sure you set up and additional “emergency” IRA (with a different account number) that is fully separate from the IRA that will be used for your 72(t) (SEPP).
This will allow you some breathing room should an unforeseen emergency occur. You”ll be in the SEPP for over seven years. You don”t want to bust a few years up the road.
Good luck on your retirement!2006-05-18 12:04, By: francis3, IP: [151.203.12.7]

L2: penalty or no penaltyBefore you do the 401k rollover, be sure to assess the amount of net unrealized appreciation you may have in employer stock shares and/or their spin offs which are still in your 401k. With a low cost basis it may pay to take some of these shares into your taxable account to get the lower LT cap gains rates. You will pay ordinary tax on the cost basis and also the 10% penalty prior to age 55, but if the cost basis is low enough it may be worth it. It could reduce the amount you have to allocate to your SEPP.2006-05-18 20:47, By: Alan S., IP: [24.116.165.157]