You are taxed annually on your mutual funds net income and realized gains.

You can roll over all the contributions made to your plan and any earnings on those contributions that haven't yet been taxed referred to as pre-tax contributions. Health insurance premiums, if you are unemployed for longer than 12 weeks. Please note, however, that withdrawals or surrenders from a variable annuity may be subject to surrender charges. But when a healthy company terminates a plan it still must pay benefits it owes to date, including maintaining the checks of current retirees at the promised levels. Generally, you have four choices when faced with a lump-sum distribution. The employer stock must move in-kind from your plan to a brokerage account i.

Finally, at your age you probably don't have to worry about the possibility of the higher income triggered by the conversion disqualifying you for benefits such as higher education tax credits. You may reinvest your dividends and capital gains or receive them as a distribution. You may want to consult your tax adviser about your situation.