20 Financial Tips for Retired Married Couples
10. Consider Converting a 401(K) to an IRA
A big financial consideration for either retired or soon to be retired married couples is considering rolling over either one or both individuals’ 401(K) plans. Whenever one leaves their job, they have the option to roll the full balance over to an IRA. Consulting with a financial planner is critical in these cases to make sure that the benefits outweigh the potential negatives based on each person’s age and work situation. If the primary wage earner leaves a job in their 50’s, then converting the 401(K) to a ROT may not make any sense since you can normally take 401(K) withdrawals without penalty from a job that one leaves at the age of 55 or older. If the money is moved to a traditional IRA, the person will have to wait until he or she is at least 59 and ½ years old to avoid the penalty for early withdrawal.
