Wednesday, May 21, 2014

Changes coming to Tribune Company Retirement

By Brett Levy

IMPORTANT NEWS from Bob Rosenblatt on the retirement changes coming next month in regards to the splitting of the Tribune Company:

Rolling over the 401(k) into a personal IRA is a good idea. It gives you direct control of the money, and more choices about how to invest the money.

Vanguard looks like the best place to put the money. The company just began “Voyager” advice, where you can get a personal consultation with a financial adviser if you have $50,000 in a personal Vanguard account. The fee for this is just $250.

Vanguard also has a wide array of mutual funds, typically with the lowest fees of any investment firm.

This means rolling over your money from the Tribune 401(k) plan to an individual account at Vanguard. Do this is as a “trustee to trustee” transaction, where the money goes directly from the Tribune account to the new individual account. DO NOT have them send a personal check to you. If you do that, all the money in the 401(k) becomes immediately taxable.

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