Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
401k
Old 12-08-2003, 10:17 AM   #1
Confused about dryer sheets
 
Join Date: Dec 2003
Posts: 1
401k

I am new to the website and I want to know what restrictions you have on 401k withdrawls after you retire. I am 57 years old and I have about 500k in a company managed 401k and I want to move it out to a self directed savings/income type of investments.
__________________

__________________
early_out is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: 401k
Old 12-08-2003, 10:34 AM   #2
Recycles dryer sheets
 
Join Date: Nov 2002
Posts: 373
Re: 401k

Take a look at http://www.retireearlyhomepage.com/wdraw59.html

If you have retired after age 55, then I think you can take withdrawals from the 401k. *Your options for withdrawals are to take withdrawals from the 401k or to roll it over to an IRA and take withdrawals from it. *There are advantages and disadvantages to each way. *

Personally, I rolled the pre tax portion of mine over to an IRA, and the after tax portion to an after tax account. *I am 50, so the age 55 withdrawal from a 401k was not an option. *And I find 'forever' type paperwork and tracking a real nuisance, so I seperated the pre and after tax portions. *Now I live on the after tax portion, with a small annual SEPP withdrawal to move money from the IRA to after tax. * The withdrawal was sized to keep me near the top of the tax bracket, without going into the next one. *That decision was based on analyzing output from ORP and seeing what it was recommending (i-orp.com)


Wayne

(edited by admin to fix typo in URL)
__________________

__________________
wzd is offline   Reply With Quote
Re: 401k
Old 12-09-2003, 05:12 AM   #3
 
Posts: n/a
Re: 401k

Hello Wayne! Re. "forever type paperwork" I go to great lengths to avoid this myself. For example, when I need
to take money out of my little holding company, I always
take it as dividends. Why? Because this causes me the minimum of paperwork. There may be some more financially
beneficial ways to extract the money. I don't care
because I want to avoid hassle. I am quite hassle-averse
and becoming more so all the time. Active
proponent of the KISS system.

John Galt
__________________
  Reply With Quote
Re: 401k
Old 12-18-2003, 06:20 AM   #4
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: 401k

early_out, yes you can withdraw from a 401k with no penalties if you retire after age 55. I verified that with my company, Vanguard, and even the IRS.
__________________
renferme is offline   Reply With Quote
Re: 401k
Old 12-18-2003, 08:01 AM   #5
Recycles dryer sheets
 
Join Date: Nov 2002
Posts: 373
Re: 401k

Just to highlight one point in the above
Quote:
you can withdraw from a 401k with no penalties if you retire after age 55
Retire after age 55 is very much key here. The early withdrawals after age 55 only apply if you retire after 55. If you retire at age 54 or earlier, you cannot start withdrawals at age 55.

Since earlyout was 57, I didn't highlight that earlier; I'm just adding it now for other readers.

Wayne
__________________
wzd is offline   Reply With Quote
Re: 401k
Old 12-19-2003, 05:13 PM   #6
 
Posts: n/a
Re: 401k

Just to put a fine point on it, withdrawals from a 401k can be taken without penalty if one retires during or after the calendar year in which they turn 55. Won't make a difference to many people but for the odd case when one retires prior to their birthday in the calendar year they turn 55 it would be important to know.

Joe
__________________
  Reply With Quote
Re: 401k
Old 01-05-2004, 11:21 AM   #7
 
Posts: n/a
Re: 401k

Thanks to all for the info. 90 days and counting!!! Early- out
__________________
  Reply With Quote
Reply

Tags
401k


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 08:00 AM
Trad 401k or Roth 401k for High Earners Linney Young Dreamers 7 01-01-2007 08:24 PM
Roth 401k - Coming January 2006 Roth401k Other topics 12 06-16-2005 05:59 PM
Paying off Debt vs. 401(k) Contributions BigMoneyJim FIRE and Money 4 02-10-2003 11:06 AM

 

 
All times are GMT -6. The time now is 09:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.