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Questioner: Megan

Question: I changed jobs a few weeks ago and recently received paperwork from my former employer giving me the option of taking a lump sum payment of my pension or rolling it into a traditional IRA. I was at that job for 9 years and the payout would be only about $1,800. I'm wondering if it is worth it to put that money into an IRA, or should I accept the lump sum payment, which I could use to pay off tuition and some other bills. I still have my 401k, which I will be rolling over to my new job's plan as soon as I'm eligible.

Answer: Megan, thanks for your question. This question has a lot of answers as it is more based on your entire financial picture which you have not mentioned. However, I would say that yes it is a small amount in this one account. However, that small amount is added to everything else you have. Even though it is small it is still something. Since you are in the process of rolling over your 401(k) just go ahead and rollover the small account into your 401k also and combine them both to make one big account.

Every little bit helps. Hopes this helps you and good luck.

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