I am 67, my wife is 66. We are both retired and receive about $65,000 a year in Social Security and pension payments. She has a 401(k) with her former employer worth about $216,000. Its return has been 3 to 4 percent, all in a “stable value” fund. I have $420,000 in a 401(k) with my old employer. It is averaging a 2 to 3 percent per year return, also invested in a stable value fund.
In your columns you seem to suggest rolling over 401(k) accounts to an index fund. If we roll over the 401(k) accounts and invest in index funds, would we not have to pay taxes in the 25 to 35 percent range?
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