Health Insurance Online
Phone Icon
Call now to speak with a Licensed agent (866) 954-1892

Insurance Type:

Taking Care of Mom and Dad: 401(k)s, IRAs & etc. Introduction

My mom is 67 and was still working full-time when she had a stroke a few months ago. She's been divorced from my father and living -- happily -- on her own for almost 20 years, so she wasn't prepared for someone else to take over her affairs. But, while she was in the hospital, my brothers and I agreed that I was the logical one to step in. It turns out she's okay financially...she's got good health insurance and some money saved up. But she doesn't want to work any more. And her retirement money is tied up in four or five different accounts from different jobs she's had. Now I've got to help her organize all of that.

Defined contribution plans have been around long enough (since the late 1970s) that the chances are good that your parents have some form of 401(k), SEP, Keogh or IRA as their main private sector retirement benefit.

By the time you step in to help your parents, you may find that their defined contribution benefits are a mishmash of accounts spread around various banks, brokerages or benefit administrators. In some cases, it may make sense for your parents to have their retirement money in different places. In most, however, it will make better sense for them to organize this money in a more basic structure. And the responsibility for that organizing may come down to you.

In this chapter, we'll consider the mechanics of defined contribution plans and the best strategies for organizing and managing them.

Google Plus One