Ask Terry Questions Mother-in law’s 401K

Mother-in law’s 401K

By Terry Savage on February 28, 2024 | Financial Planning / Retirement

My 88 year old mother-in-law has a traditional IRA just under $10000 dollars. Over the years it changed on who is managing it. US Bank manages it now and has it in a CD . She is paying more on the annual service fee than on what interest she’s earned. I was thinking of helping her open her own Schwab IRA account and transferring her existing account to Schwab where she can put it in something very safe, but won’t gouge her on fees. Do think this is a good idea or do you have another option? Thank You .

Terry Says

I think that’s a terrific idea. Be sure you do a direct rollover to Schwab. AND, if it’s an IRA, she should have been taking RMDs over the years! Be sure she is doing that. And leave the money in a MM account, so there is liquidity for that.

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