Questions and Answers

How to combine my old 401(k)s into an IRA?

August 19, 2019January 31, 2013 by Reader Q&A

Question Hello, I am 40. I have two 401(k) funds one with $20k+ and another one with $400 from my previous jobs. In my current job I am not contributing to 401k Questions: Can I combine those two funds in a traditional or Roll-Over IRA ? Do I have to pay taxes on April of … Read more

Can I take money out of my 401(k) without paying penalty?

August 9, 2019November 4, 2012 by Reader Q&A

Question The company I work for just terminated their 401(k) plan and suggested employees roll their funds over to an IRA. My question is can I cash out say 20% (to pay off debt) of my balance without paying the penalty and roll the remainder over to the IRA account? I have over a couple … Read more

Can you draw unemployment and social security at the same time?

August 9, 2019September 1, 2012 by Reader Q&A

Question Can you draw unemployment and social security at the same time? Thank you, Larry Higdon Answer According to SSA.gov: Unemployment insurance benefits are not counted under the Social Security annual earnings test and therefore do not affect your receipt of Social Security benefits. However, the unemployment benefit amount of an individual may be reduced … Read more

Should I withdraw from IRA to pay mortgage for a few months?

August 9, 2019July 30, 2012 by Reader Q&A

Question The tough job market has hit me hard, but I have a job start in 3 months. That said, I am looking at having a hard time paying my next mortgage payment. I have $200+K in my IRA. I believe that I should withdraw money to insure that I pay my mortgage, however, a … Read more

I am retired. What should I do with my 401(k)?

August 9, 2019July 21, 2012 by Reader Q&A

Question I’m retired and still have a 401-k with my former employer through Fidelity. I went to a financial advisor thinking about rolling it over to an IRA and get invested to stocks or etc. However, with the quarterly fees that will be taken from my assets balance, will be a big money from me. … Read more

Should I work as a salaried w2 employee or a 1099 contractor?

August 9, 2019July 20, 2012 by Reader Q&A

Question I started working for a company and they offered me $53 /hr on W2 or $55 on 1099. That employer is suggesting me to take salary on 1099 so that I can save more taxes rather on W2. He asked me to start a consulting company so that my company expenses can be shown … Read more

Should I Buy a House if I am in Debt?

July 2, 2020February 19, 2009 by Reader Q&A

Question My husband and I have $36,000 in credit card debt with an average interest rate of 6.7%. We can only make minimum payments on this debt. We have about $3,000 in savings and are 30 years old with 3 children, the oldest is in kindergarten. We both work part-time 12-18 hours a week, and … Read more