Author Topic: Retirement Account Clean-up  (Read 1592 times)

free_fries

  • 5 O'Clock Shadow
  • *
  • Posts: 16
Retirement Account Clean-up
« on: April 28, 2016, 06:29:23 PM »
Hi folks,

Please help me sort out my finances! I’m projecting/hoping to leave the rat race in about 10 years (my mid-40s).

Retirement Accounts
Acct #1 Rollover IRA $40.3k
Acct #2 Roth IRA $22.9k 
Acct #3 403(b) from most recent job $46.8k (still at brokerage, allowed to leave it indefinitely)
Acct #4 401(a) from most recent job $36.3k (still at brokerage, allowed to leave it indefinitely)

Liquid Accounts
Checking currently at $12k

Debt
None

Property, other assets
None

Issue 1 – Rollover IRA
History – Left job in 2008, rolled over 401(k) into Acct #1 above. 
Question – Pre-MMM, I added $2,500 to that account in 2011.  I was a full-time grad student and had a surplus from my summer internship.  Instead of I don’t know putting it towards my student loan, I took this after-tax money and added to the Rollover IRA account.  I’m pretty sure I deducted it on 2011 taxes so am I square or do I need to be careful withdrawing these funds vs. the original deposit which is pre-tax money when the time comes? What does this mean if I combine this with other retirement accounts?

Those were my only two deposits to the account and each transaction its own line item.

Issue 2 – This year’s Roth IRA contribution
History – In Jan 2016, I made my 2016 Roth IRA contribution for tax year 2016.  My job was eliminated at the end of 2015  and I had a large amount of cash stockpiled for my layoff. I knew I'd be easily able to cash flow my expenses with unemployment income so I figured I’d use my liquid stash to buy.  Fast forward to late April and I just started my new role. $86k annual salary.  For 2016, will receive 17 paychecks for $56,231 gross salary.  After maxing out my 403(b) ($18k) and HSA account ($2.75k, employer kicks in $600), my adjusted earnings will be ~$35.5k.  Even combined with my $6,640 of unemployment income, I have my lowest income in years. Note - that contribution has earned $447.99 since January.
Question – Should I leave that $5,500 where it is in my Roth IRA or can I do something better with it? If I make changes when? ASAP or late 2016?

Issue 3- What’s next
As mentioned above with my new gig, I have a new 403(b) and will have access to HSA (first time) so I will be adding two more accounts to the mix.   What do people here do?  Combine accounts with each new job?  Keep multiple?  Fees are pretty low all around and I feel my funds are a pretty good mix so I’m not super motivated on moving things around.  For now, just curious about account management.  I’ll move on to the nitty gritty of allocations next.

Thanks!

 

Wow, a phone plan for fifteen bucks!