Prev: I am retiring. How to use saving in retirement.
Withdrawing your money when you retire
It is good to think about these decisions ahead of time, so that you are prepared.
- Transitioning at retirement
- Make a plan for what is coming
Transitioning your savings at retirement
Once you reach age 59 1/2 you can withdraw money from your 401(k) without incurring the 10% early withdrawal penalty. You can roll it into an IRA, take the money as a lump sum (and pay income taxes on it), buy an annuity, or leave the money in the plan to continue to grow.
When you reach age 70 1/2, you must start taking distributions each year, unless you still work for the employer that offers the plan. These are called “required minimum distributions”.
Once you reach age 59 1/2 you can withdraw money from your 401(k) without incurring the 10% early withdrawal penalty. You can roll it into an IRA, take the money as a lump sum (and pay income taxes on it), buy an annuity, or leave the money in the plan to continue to grow.
When you reach age 70 1/2, you must start taking distributions each year, unless you still work for the employer that offers the plan. These are called “required minimum distributions”.
Make a Plan For What is coming
- Make a budget. Manage your cash flow and expenses.
- Is your housing right? Nothing affects your finances as much as housing.
- Be prepared for unexpected surprises. Research long-term care, disability and life insurance.
- Make a budget. Manage your cash flow and expenses.
- Is your housing right? Nothing affects your finances as much as housing.
- Be prepared for unexpected surprises. Research long-term care, disability and life insurance.
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I am retiring. How to use saving in retirement.
