Q:  I’m retired, living on Social Security and want to buy a plug-in hybrid automobile. I don’t pay taxes, so how would the credit work for me? – R.B., no city given

A: The clean vehicle tax credit worth up to $7,500 is a nonrefundable credit, meaning you have to pay taxes in order to receive it. Because of this, you could consider generating a tax bill through IRA distributions, Roth conversions, or selling investments in a non-qualified brokerage account. Talk to a tax adviser to discuss these strategies in detail. –  Tommy Lucas

Q:  I am leaving my company, and they are giving me a nice severance package.  I also have a 401(k) and a pension.  What can I do with those?  – R.J., Orlando

A:  You can roll the 401(k) into an IRA.  The pension can most likely be rolled into an IRA also because most companies offer a lump sum distribution option.  Your pension plan manager can verify that for you. – Rhonda Shurtleff

Have a question? E-mail askanexpert@fpafla.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by Certified Financial Planners from the Financial Planning Association of Central Florida. Answers are for educational purposes only; you should also consult a financial professional. Questions and answers may be edited for space considerations.