Quote:
Originally Posted by masraum
Well, if you're going to make a post like this you need to at least tell everyone specifically which info is bad.
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Sorry about that, I'm sick and cranky. I didn't want to give advise, because I don't pretend to know all the answers. 2 reasons I made the comment:
1) My neighbor got some bum advise and thinks he has to exhaust his fund by ago 701/2, so he's taking out more than he needs now that he is 65. He got some bad advise and he's paying more tax than he should because he's drawing more than he wants to.
2) For years, there was basically on one type of 401(K), now there are many. The one my wife has can't be touched w/o penalty until she is 59 1/2. BUT, these is an exception under TAX Code 73 (TC 73)....I don't want to explain it here, as once again, those asking this question should get professions advise.
Additionally, I was a Gov't employee for 30 years and although many call my plan a 401(K), it's actually a 457(C)....I was allowed to withdraw w/o penalty when I retired at age 52 -
I think with any plan, you pay the tax that year on what you withdraw, so you spread it out.....IF you take 300K out all at once, it's like you made 300K + any other income that year. If you spread it out (I take 15K a year and my balance go up instead of down), you use it to supplement your retirement pay and pay tax only on an extra 15K a year.
So, once again, I'msorry for my previous post....