Individual Retirement Account
The rules regarding IRA qualified plans are among the most complex in the tax code. Since IRA programs are designed to provide retirement benefits to a participant, at some future dates all participants will begin to withdraw savings from the IRA. IRA distribution is required at age 70.5; and as a general rule, there is a 10% IRA penalty for distribution take before 59.5.
In 1974, the Employee Retirement Income Security Act (ERISA) introduced the concept of tax-free rollovers. Would it be to your advantage at retirement to rollover your 401k and/or pension into an IRA?