Imported item 344

Written by
Nicole Frankowski

"I am a single 60-year-old woman with $10,000 in a Simple IRA from a previous employer and $75,000 saved in a 401K from another previous employer. I recently started a new job, contributing 20% per month in a 401k. In the past, I worked for 18 years at a hospital and have a vested pension there. I have been informed that they are closing the pension fund at the end of the year (my vested amount is estimated at around $30,000). These are the options I was given: 1) payout in a lump sum, 2) convert to an annuity and receive around $200/month, or 3) roll over into my current 401K. I currently have an emergency fund of around $30,000. I was initially planning to roll the pension into my 401K, but wondering if I would be better off taking the lump sum, add $20,000 cash with it, and purchase an annuity?

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