Can I roll my 401K into cds? without penalties..?
Yes you can. Easiest way is to ask for a trustee-to-trustee form from the 401K company (If they don't have it, the bank does), then take it to your bank. They usually do the rest. The only difference is that now it will be called an IRA. It still has the same rules that a 401K has. Things to keep in mind: This has to be a former employer. This will still be treated the same as a 401K No withdrawals till you are 59 1/2 You have to continue to renew it till you turn 59 1/2 If you forget to renew It you might get stuck with an ugly rate for some months. You might want to speak to a banker about this to see if they have better ideas for you, or a really long CD that pays a decent rate. WaMu (Now JP Morgan) has a 4-10 year CD that earns 5% not a bad rate to lock in for a while
How can you get the maximum Social Security retirement benefit?
That is a good question and I'm so glad that you asked it........Ok, that's the candidates opening line. And of coarse I'm not going to answer your question. Expect a major re-working of Social Security in the next few years for those under the age of 55. Here is what I expect. You must work until age 72 or you become disabled. If you become disabled then you will be eligible for SSI if you meet the two test below. To receive Social Security there will be two test: First. Your net worth will be required to be below a certain amount. There will be a formula that may take into account which state you live in and the value of your home and perhaps the value of any pension accounts. Second. You must not have any income above a certain threshold and again there will be a formula that takes into account any retirement income from IRA or pension. And yes, it will penalize those that have saved for themselves. Along with these test will be rules that limit giving away assets through out your whole life in the way of new gift tax rules. The maxium benefit will be determined by a formula that takes your personal financial position into account. If the formula is like tax law then it will probably take a computer spreadsheet to figure it out and certain details won't change the amounts at diiferent income levels or net worth levels. I think that this is where it will have to go in order for there to be funds available for those that truely need the SS benefits. If you need it, it will be there and if not it won't be.