In this video series, AAAs director of Financial Services, Bill Gerhard, explains what an Individual Retirement Account (IRA) is, and what the advantages and differences are between a Roth IRA and a traditional IRA. This video is an introduction to IRAs and covers finding a provider, investment allocation, restrictions and rollovers, compound interest and the Rule of 72. AAA offers financial services to members and is the largest consumer organization in North America.
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Tax help! How to report retirement savings on a1040A tax form in this free video on tax help and personal finance. Expert: Tom Noah Bio: Tom Noah has been a Certified Public Accountant (CPA) for over 27 years. In that time he has held positions at several companies as an accountant and a director of financial planning. Filmmaker: Drew Noah

Question by Neosamurai: Retirement Savings?
My mom has about K sitting in a retirement account with an old job. What are her options in regards to pulling that money (with penalities) out and making the most out of it within the next 15 years or so?

Best answer:

Answer by Kathryn
If she pulls it out with penalties, she won’t be making the most of it. She can leave it where it is, or she can roll it into an IRA. If she rolls it into an IRA (with a company like Vanguard or Fidelity) she can then invest in a mix of stock and bond mutual funds that match her risk/reward tolerance.

If she wants the money to grow and help provide for her in her retirement, she definitely needs to leave it in a retirement account. Pulling it out means paying penalties and not allowing it to grow tax free, which would be a big mistake.

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