401k withdrawals

[vincemal]

just finished watching a retirement advice guy on pbs talking about stretch ira's, etc. i am interested in joining in any discussions relative to accessing 401K funds at 62 with minimum irs damage. this is my first post. hello to all.

[crazy connie]

Darn I missed it! Bet it was Ed Slott? His website (http://www.irahelp.com/phpBB) is full of Q&A on these issues.

Welcome aboard Vince! Tell us a bit more about yourself when you can and jump in when you want!

[mickeyd]

Welcome here Vincemal.

I saw that last night on PBS here (I believe it was a repeat as much of it seemed familiar to me). I believe it was a pretty good presentation of the material. Ed Slott was there to make a comment, in addition to many more.

Not sure exactly what you are looking for, but all 401(k) withdrawals (W/D) are taxable as ordinary income (unless they are Roth) after age 59 1/2. This has been an often discussed topic here so you will get many opinions if you can be more specific as to what you wish to discuss about 401(k) withdrawals.

[vincemal]

thanks to all for the welcome. I am a teacher planning to retire from full time teaching next year. I don't contemplate taking social security right away. Probably work a few days per week and taper off. right now my school has a 401k plan with a profit sharing plan. I have been frustrated by the limited choices within the plan, never a big fan of mutual funds to begin with, and the limits to moving funds around. it is my understnding that since the pension reform act it is possible to remove contents from 401K and still remain a full time employee. Is that correct?

[crazy connie]

Quote:

Originally Posted by vincemal thanks to all for the welcome. I am a teacher planning to retire from full time teaching next year. I don't contemplate taking social security right away. Probably work a few days per week and taper off. right now my school has a 401k plan with a profit sharing plan. I have been frustrated by the limited choices within the plan, never a big fan of mutual funds to begin with, and the limits to moving funds around. it is my understnding that since the pension reform act it is possible to remove contents from 401K and still remain a full time employee. Is that correct?

Ask for and read the Summary Plan Descriptiom (SPD). The ability to roll away from the 401K to an IRA where you have limitless choices will be spelled out in that document. Many plans allow that once you have reached a certain age!

[vincemal]

Thanks for the feedback, connie. I tried to acess that link for ed slott you provided and it indicated tht it was no longer available, at least at that address.

[RonBoyd]

Try this:

IRAHelp.com - Your One Stop to All Your IRA Questions

[mickeyd]

Quote:

right now my school has a 401k plan with a profit sharing plan.

This is a bit confusing. Schools usually have a 403(b) plan. PS plans are not generally found in schools, though DB plans often are. Are you sure about the PS plan?