Terry, I am curious about what to do with money that I have in an employer (fire department) sponsored 457 account with Nationwide Retirement. I have about $220k in the account, but I cannot make additional contributions now that I am retired. I am 57 years old and I do not intend to collect until around age 70, if needed. The 457 company website says that if I were to roll into a Roth IRA there may be a 20% withholding for taxes plus a 10% IRS tax. Is there any way around these taxes and if not would earnings possibly make up for the loss over the long term? The other option is to roll it into a traditional IRA within the same provider with no fees or taxes. Which option is better? Thank you for your help.
Terry Says: There is a third option — do a rollover to a traditional IRA with a different provider. I suggest contacting Fidelity or Vanguard, or T. Rowe Price and letting them handle all the rollover paperwork, and letting them give you advice about the appropriate mutual funds to use to diversify your account and keep it growing.