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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.
Related:
I am retiring. How to use saving in retirement.
Our goal is to change how we think about saving.
I founded NARPP as a non-profit, because I believe that retirement savings should be about people— and making their lives better. Not about assets under management, sales goals and commissions. The process of saving for retirement has become so complex and confusing it is not surprising that people have a hard time figuring out what’s in their best interest. It doesn’t need to be this way. At NARPP we are committed to simplifying the complex, delivering fair and transparent investment information, and giving people ownership and control of their retirement savings. Our singular mission is to help you succeed.
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