Here are several key tax-saving strategies for early retirees:
Dilemma: to roll it over or not to?
If you work as a company employee (as opposed to being self-employed), your main priority is to figure out what to do with your qualified retirement plan accounts: 401(k), profit-sharing, stock bonus plan, etc.
Many people roll the whole shebang into an IRA. That may make sense because you can manage your retirement funds while you continue to defer tax on the income that they’re generating.
A rollover makes even more sense now that five-year income averaging is no longer available on lump-sum distributions— it expired in 2000—and 10-year averaging is available only for certain retirees born before 1936. (RR, 5/29/06)
Note that you can’t roll...(register to read more)