Pension Fund rollover
My wife received a letter from a former employer of hers that she can start to receive her pension. She needs to let her former employer know how she wants to receive it. Monthly payments or whole amount. She would like to take it as the full amount but does not want to incur a penalty. She would like to roll it over. What would be the best options for her at this time, my wife is 62 years old?
Terry Says
Probably the former employer just wants her OUT of their pension fund, as they are likely switching to some kind of defined contribution plan, such as a 40l(k).
She should call 800-VANGUARD or 800-FIDELITY and tell them she wants to do a direct ROLLOVER from a former employer’s pension plan. They will handle all the paperwork (make sure she has all the account info when she calls). Her only decision will be how to invest the money when it gets moved directly into the new account. (She should never take a check!)
She can start by putting it all in a money market fund for now, then moving about 2/3 gradually (some every month) into their Equity/Income fund — a conservative place for someone her age.
