Can I keep the money in my 403b once I leave Higher Education?
363169
The answer to this question depends on the plan documents that created the plan. Typically an employee can keep accumulated balances in a 403(b)when leaving employment with a qualified employer. However since all the funds are employer contributions you should check the plan document to see what the vesting rules are, if any. Since you say that you have been employed in Higher Ed for a quite some time its likely that you have satisfied any vesting requirements. Your employer can also give you this information.  \n\nRollovers of 403(b) contributions are usually governed by the plan documents that created the 403(b). It can be difficult to roll the funds over into another qualified 403(b) plan. You cannot roll a 403(b) in an IRA or a Roth IRA.
252767
If you have the cash I think the pre-paid account is a good deal.  I did the 5 year plan, but if I had it to do over again I would do the lump sum and get another year when I had enough for it.  The problem with the 5 year and extended payments is that the interest rate is 7.5 or 8%.  So I am paying mine off as quickly as possible.  \nI would get two or three years through the pre-paid plan and invest any extra money in a 529 plan and keep it in a pretty aggressive stock fund until the kid is in college.
862892
There are employers who offer a relocation allocation if the person moves, but it is not always the case with every single job. However, in some circumstances, the federal government offers a tax credit in some circumstances of a move for a job, but you have to check with your accountant with it. Unfortunately, unless your friend gets specific about the one for college other than telling you there is one out there, I do not know of any.
696170
Rules on pensions just changed on 6 April 2006 and now you can only make a contribution in relation to 2006/07 during 2006/07, so no spreading anymore.  \n\nIf you made a big contribution you could reduce this year's tax to nil which would help to give you extra cash to pay earlier year's tax.\n\nBe aware you may well have incurred penalties by this stage.\n\nWorthwhile finding a tax adviser to help you.
1121999
I think  you'll need to invest a lot more money than that. If you earn 6% (which is about the average annual gain on an investment) you are only gaining 30,000 pounds a year, and when you withdraw that money from it, you'll lose a good portion of it to taxes and such, probably close to 1/2 of it.
987054
I'm a financial planner and I do quite a bit of college planning for my clients.  The plans that generally work the best are 529 accounts.  There are others, such as EE bonds, borrowing from a Roth IRA, etc. but it doesn't make sense to me for a variety of reasons.  \n\nThe 529's have no income limitations.  You can put up to $12,000 per year in the accounts.  They are government sanctioned and earn money tax free.  You have tax free withdrawls for qualified purposes.  That includes tuition, fees, room and board, etc.  Also they can be used for trade schools if you child does not want to attend college.\n\nThey can be rolled over from one family member to another, as needed, with no penalties.  They are protected from bankruptcy as long as you don't declare within 5 years of putting the money in.  And, yes, you can get the money out in emergency.\n\nThere is a 10% penalty for non-qualified withdrawls and you owe taxes on non-qualified withdrawls.  But remember, your money is growing tax free while it is in there, so this is not as big a penalty as it sounds.\n\nYou can pick from any states 529, you don't need to use your states plan.  To shop for plans check out www.savingforcollege.com.  It's a great resource.  Personally, I like the New York self directed plan.  Not the advisor directed plan.\n\nIt's got Vanguard funds and a very low expense ration.  Also I would suggest signing up for Upromise.  It's free and is a rewards program that gives your child money in the 529.  You just register your grocery card and other cards.  The whole family can do it, it's a great program.\n\nOne last bit of advise:  use the states age based portfolio's.  The will automatically change the investments as your child nears college.  Good choice.  \n\nOne of my podcasts covers college planning.  You can find it at www.promoneytalk.com\n\nHope this helps,\n\nJason
49054
As I understand it, you can recharacterize it as a Roth IRA next year. However, at that time you will owe taxes on the value of the account (which will likely be greater than the initial amount invested).\n\nIt only makes sense if you expect to be taxed next year at a lower rate.
1057164
The short answer is "no".  Grant money is usually paid by the government and is only given to first time bachelor students.  You might be able to find one or two financial aid options at Fastweb.com, but most of those will be for first time bachelors or grad students.  There are a couple that you might be able to find, but grant money is few and far between once you have your Bachelors degree.
675447
Each company has their own policy.  Some may allow withdrawls starting at age 55 (reduced benefits).  Generally, the only way you'll receive a lump sum is if the company had a policy such that if the net value was below some threshold (depends on the company), they would pay it out as a retirement distribution.  You would then have to put it in an IRA of some sort and cash it out early paying the appropriate penalty.  You'll need to contact the benefits dept of your former company and ask their policy.
56556
There is no limit to the number of 401(k) plans you can have, other than the number of employers you have/had. Some employers require that you remove your funds within a certain amount of time; others just like having your money.\n\nI usually take my funds out of a 401(k) plan and put it into an IRA so that my old company cannot continue to manage (or mis-manage, think Enron) it. If you transfer it to a qualified IRA, there is no penalty. Talk to your old company and whoever's handling the IRA to make sure you transfer it properly ... there are usually standard forms. DON'T TAKE IT OUT FIRST AND THEN TRY TO RE-DEPOSIT IT ELSEWHERE ... THAT WILL INCUR PENALTIES!!
873438
Assuming that your parents are domiciled and resident in the UK (which you would know if they were not) than all gifts to you will be potentailly excempt transfers.\n\nIf they gift you assets/cash and then survive for 7 years there will be no IHT. The IHT will be reduced on a sliding scale if they survive for between 3 and 7 years. \n\nTransfers to all trusts are now chargeable lifetime transfers (from March 2006) and will give rise to an immediate charge of IHT at half the full death rate. If the donor then dies within 7 years there may be a further charge but as above taper relief may apply. \n\nThere is a yearly annual exception of £3k but this is minor compared to the amounts that you are talking about.\n\nAlso remember that depending on the asset that you are to receive there may be capital gains tax to pay (not on cash, primary residence, cars, wasting chattels and other small exemptions) this can be held over though gift relief. This means that your parents would not pay the tax but when you come to dispose of the asset you would pay capital gain tax on the whole gain starting from when your parents aquired the asset.
125409
If you are still employed by the plan sponsor your withdrawal options may be limited. Read the plan summary you should have received or talk to your HR person. You might be able to take a loan from your account, but it must be repaid within 5 years.\n\nIf the 401k is from a previous employer, then your options are greater. You can roll the account over into a Traditional IRA. This transaction does not trigger any taxation. \nIf you are over 59.5 years old, you can withdraw money from the account. Any amount withdrawn will be taxable to you as income.\nIf you are not over 59.5 and you withdraw money not only will you pay taxes on the amount you withdraw but you will also pay a penalty of 10% of the withdrawn amount.\n\nIf you do not need the money to cover basic living expenses right now, do yourself a favor and roll the money over into an IRA. Work with a financial planner in your area if you would like help deciding upon an appropriate investment strategy.
781769
Assets that are excluded are:\n1. Retirement accounts - IRA, 401-K, Roth, annuities.\n2. Whole life insurance.\n3. Net worth of personal residence.\n\nAssets included that count against you:\n1. Custodial Account for student - 35% against you.\n2. In your name (not listed above) - 5.6% against you.\n3. 529 plans for you student in your name - 5.6%\n4. Assets a grandparent could give you before you graduate - 0.0%.  If they gift it to you after your senior year FAFSA, it can be used to pay off any loans before the interest starts on a Stafford loan.
88417
First, it seems odd that a single company would offer a 403b and a 401k. Typically a 403b is available to employees of a non-profit organization and 401k to for-profit.  The limits are the same.
836184
I presume you're talking about a retirement account (401K or pension) you've got at an employer or perhaps an IRA at some financial instituion and you want to move it somewhere else.\n\nIn order to not have to pay big-time taxes and potentially penalties, your account monies need to be transferred to where you want them to go in a very strictly regulated way.  You'll need to talk to the financial institution where the money is right now and they should have some forms for you to fill out telling them where it needs to go.  Then, they should completely take it from there and the next thing you know, you shoul dbe receiving a notice from the institution you're moving the money to that they've got it there.\n\nIf on the other hand you choose to have them cut you a check that you hand carry or mail to the new institution, the law considers you have realized capital gains and you owe tax on it, even if you pop it right back into the new institution.\n\nThe law pertaining to this is typical pointless Federal bureaucracy that was intended to cvatch a few cheats.  Don't try to buck the law, have your current institution  handle it.
50
You can withdraw the money for childrens higher education. Details:<br />\nHigher education expenses.   Even if you are under age 59½, if you paid expenses for higher education during the year, part (or all) of any distribution may not be subject to the 10% additional tax. The part not subject to the tax is generally the amount that is not more than the qualified higher education expenses (defined later) for the year for education furnished at an eligible educational institution (defined later). The education must be for you, your spouse, or the children or grandchildren of you or your spouse.
474444
Yes.\n\nAlthough you would be penalized if you withdrew any earnings.\n\ni.e. If you contribute $1000 and it grows to $1200.  You can withdraw the original contribution of $1000, but not the earnings of $200.