Ask Terry Questions Defined contribution plan

Defined contribution plan

By Terry Savage on December 22, 2023 | Financial Planning / Retirement

I’m in a tax deferred defined contribution pension plan with Enpower. I’m curious if there is a way to transfer the money in this fund to a fixed in trust tax deferred account. I’m 68 years old and I don’t intend to draw any funds from the account until I’m required too. Any suggestions?

Terry Says

I’m not quite sure what kind of retirement account you have, based on your question. Is this just a SEP-IRA or something like that, which you set up with Empower? Or is this a pension plan from your employer? It makes a lot of difference.

If it’s your own plan, not a corporate plan, you should be allowed to do a direct rollover at any time to another custodian. I’ve never heard of a “fixed in trust” tax deferred account.
But if you do a rollover, perhaps to Fidelity or Vanguard, you’ll have your choice of investments, defer taxes, and not be required to withdraw until you reach age 73.
Read this about rollovers in general.
https://www.terrysavage.com/rollover-now/

If I made some wrong assumptions about your question, please write back and clarify.

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