Forsake Tax Deduction On ‘Traditional’ IRA

Unlike defined-benefit pen­sion plans where the invested assets are owned, invested and controlled by a Board of Trustees, such as the New York City Employees Retirement System (NYCERS), defined-contribution investment plans are designed to give the plan participant various degrees of access to his or her investment account. Such individual account plans are authorized under sections 401(a), 457(b), 401(k) and 403(b) of the Internal Reve­nue Code (IRC).

With that said, I cannot repeat often enough that these retirement savers are constantly being targeted by brokers to roll over their balances to “superior” investments. Simply put, such assertions are self-serving lies. Why? Because these sales sharks are simply attempting to earn a fat commission on the money you foolishly entrust to them. Just as you go to work each day to earn a living and provide for your family, so do these people. The difference is, they do not get a paycheck if they do not sell. It’s a numbers game. The more people they talk to, the more they sell. Your job is to make sure you do not buy.