Tax-Free Retirement Accounts

Introduction to 401(k) & IRA Retirement Accounts

Park Brees, Partnership Development

Dec 12, 2011

Park Brees talks about the benefits of these retirement accounts, such as matching employer contributions and tax exemptions, and how a 401(k) differs from IRA.

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Comments (2)


Avatar
Bills.com
February 26, 2010
Your question was somewhat unclear, so I will answer the best I can. If you are “removing” the annuity, it may not make sense to begin another and it may not give you the flexibility to withdraw the funds. A 401(k) would also not be an option as you are unemployed and a 401(k) is an employer sponsored program. A Roth IRA will require 5 years of contributions, regardless if you meet the withdrawal age requirements. You would have to wait until you were 63 to withdraw without penalty. Bottom line, none of these products meets your checklist of requirements for your situation. If you need to put the money into an account with the ability to withdraw at any time, a high interest savings account might be your best option.
Avatar
Terria H.
February 14, 2010
After a divorce, was awarded our annuity and wanted to remove it, so to get on my feet, and place some in a safe place that was fixed. The QDRO has been approved, freeing me from the 10% penalty, and I am aware of the 20% federal tax. I am considered disabled, unemployable, and receive $1,500.00 each month from spousal support, that is paid, but all through the month, making it impossible to budget, and escape from late fees. I am 57 and I must have a reserve and a safe place to put the remainder, and the flexibility to pull out . I have been told that annuities would be better than an IRA or 401(k) plan. Also not enough quarters to receive SS. Thank you for this, every where I turn for information, it seems there is a charge for the answer, and I just don't have it yet.
Thanks for your feedback!

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