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05-31-2004, 09:36 PM

Hi malakito,

I just checked my 401K withdrawal rules, and I think I understand them:

1. I can take a one-time partial withdrawal from the 401K; this can be rolled over to a traditional IRA and the IRA withdrawal rules apply from there, including SEPP, etc. If I do this, the balance of the 401K stays in the account where it continues to generate earnings until I withdraw the entire balance later.

2. I can roll over the entire balance of the 401K to one or more traditional IRAs and take it from there (as you have mentioned).

3. I can get monthly payments directly from the 401K based on the IRS life expectancy table--this is recalculated automatically each January. I would have no control over the amount I receive.

4. If I do anything else (getting payments based on my own 4% withdrawal calculations, getting a big lump sum out, etc.), I have to pay a 10% penalty because of my age.

05-31-2004, 09:36 PM	#19
Bill J. Guest Posts: n/a	Hi malakito, I just checked my 401K withdrawal rules, and I think I understand them: 1. I can take a one-time partial withdrawal from the 401K; this can be rolled over to a traditional IRA and the IRA withdrawal rules apply from there, including SEPP, etc. If I do this, the balance of the 401K stays in the account where it continues to generate earnings until I withdraw the entire balance later. 2. I can roll over the entire balance of the 401K to one or more traditional IRAs and take it from there (as you have mentioned). 3. I can get monthly payments directly from the 401K based on the IRS life expectancy table--this is recalculated automatically each January. I would have no control over the amount I receive. 4. If I do anything else (getting payments based on my own 4% withdrawal calculations, getting a big lump sum out, etc.), I have to pay a 10% penalty because of my age.