Cynthia MacArthur:
Determining What To Do With A Substantial 401(k) Rollover

 
Cynthia MacArthur had always been a pivotal employee at a large east coast advertising agency. But with the recent economy downturn and the loss of a major agency client, Cynthia suddenly found herself out of work – for the first time in three decades. Fortunately, her severance package – including a substantial 401(k) rollover – left her in good shape. But what to do with the rollover?
 

Objectives and Recommendations

Cynthia was concerned about taxes and penalties, as well as funding living expenses while she sought a new position. Keeping her health insurance current was a priority as well. Barker Financial worked with her to relieve the stress until she landed in a new position. Together, we resolved to:

• Rollover 401(k) to a traditional IRA account structured to meet her risk
  tolerance and time horizon return objectives.
• Review beneficiary designations to coordinate with estate planning.
• Employ severance package to fund short-term income needs.
• Review COBRA/medical insurance requirements and options.