Author Topic: Pension Rollover?  (Read 1194 times)

anxiousclothing

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Pension Rollover?
« on: November 06, 2017, 12:57:40 PM »
My wife worked part time as a teacher several years ago and put in approximately $400 into pension through PERA. 4 kids later she is a stay at home mom and won't be returning to work anytime soon. What is our best option to take advantage of that account? Leave it? Rollover into IRA? If so what and how.

Thank you in advance.

not_a_trex

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Re: Pension Rollover?
« Reply #1 on: November 11, 2017, 04:24:40 PM »
It's going to depend on the rules of the pension. Are you able to withdraw? Are there penalties? What is the payout if you keep the money within the pension fund? I would need more details about the pension before saying what I would do in your position.

MDM

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Re: Pension Rollover?
« Reply #2 on: November 11, 2017, 11:04:30 PM »
I would need more details about the pension before saying what I would do in your position.
+1

Although, for that small an amount, "taking a lump sum and adding it to an existing account" is a likely recommendation, primarily for "simplification of investment accounts."

Indexer

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Re: Pension Rollover?
« Reply #3 on: November 12, 2017, 06:43:54 AM »
For an amount that small I would say roll it into an IRA. If you have an existing IRA do that. If you need to open one, to my knowledge even Vanguard has a $1,000 minimum to open an IRA. So add a $600 spousal contribution to that $400 rollover. Or be mustachian and add a $5,500 spousal contribution. ;)


The leave it option does require knowing the details not_a_trex asked for. This is just me, but given the amount I lean very heavily towards rolling it over. That pension would have to have a really good growth rate to justify keeping it there. Good growth rate = 7% or higher rate. Anything less and I would just roll it into an IRA.