Retiring at 62, IRA & 401k Questions

Well, I've decieded to retire the end of next year(Jan, '11) at 62.

With SS, Pension, IRA and 401k I'll be in good shape, I assume.

A few questions:

-Can I combine the IRA and 401k for one annuity.
-Can I continue to contribute to the IRA and 401k if I work
part time.
-IRS says IRA and 401k withdrawal requirments @ 71 1/2
or when you "retire", What is the definition of retired?
62, 66, when you completly stop working?
-Can I rollover the 401k into the IRA while still working for
my current employer.

Thanks for any advice.

Well, I've decieded to retire the end of next year(Jan, '11) at 62.

With SS, Pension, IRA and 401k I'll be in good shape, I assume.

A few questions:

-Can I combine the IRA and 401k for one annuity.
Generally yes. You can combine your 401k into your IRA.
You may want to consider converting some of the 401k or IRA to a ROTH IRA.
This can become more complex when either the IRA or the 401k account have after tax money.

-Can I continue to contribute to the IRA and 401k if I work
part time.
You can make IRA contributions when you have earned income.
You can not make deductable IRA contributions after age 70.5.
As for contributing to the 401k, that depends on the 401k plan. Some plans will allow this some will not. Read the Summary Plan Description for your
401k plan.

-IRS says IRA and 401k withdrawal requirments @ 71 1/2
or when you "retire", What is the definition of retired?
62, 66, when you completly stop working?
At age 70.5 you must begin taking distributions from your Traditional IRA.
You can take distributions from your IRA before that time.

The same is true for your 401k account unless you are working for the 401k plan sponsor. When you are age 70.5 and working for the 401k plan sponsor, you do not have to take distributions until you retire.

-Can I rollover the 401k into the IRA while still working for
my current employer.
Here again, read the Summary Plan Description for your 401k plan. Some 401k plans will allow distributions begining at age 59.5 while most plans do not allow distributions until you separate from the employer.

Thanks for any advice.

Good plans, enjoy your retirement.

Clydewolf: Thanks much for the advice.

Another question:

Currently you can collect social security at 62 and con't working and earn up to about $14k/year before they the start reducing the ss benefit. If I con't to work and earn over the $14k, can I avoid the reduction in ss benefit if I put any excess over the $14k into an IRA?

Thanks,Again

AtHome,

No, that would not work. Your SS benefit would be penalized $1 for each $3 you earn beyond the $14,160 during the year.

I believe your best move would be to continue to work and delay taking SS benefits until full retirement age, if that is possible. At full retirement age the penalty for working goes away.

Up to age 70, delaying the start of receiving SS benefits will increase your monthly benefit. After age 70 there is no reason to delay receiving SS benefits.

Here is a link from an October 2007 Kiplingers Magazine that may give you some more things to consider regarding SS Benefits: http://www.kiplinger.com/features/archives/2007/09/couplebenefits.html?kipad_id=43