-
Sign in
- Sign up
Prev: I am retiring. How to use saving in retirement.
It is good to think about these decisions ahead of time, so that you are prepared.
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”.