smileydog
Recycles dryer sheets
- Joined
- Feb 26, 2007
- Messages
- 193
Well I think I have my ducks in a row but I thought I would run it by the brain trust here. I am 54 still working and plan on pulling the plug in about 6 months. With my current firm I have an amount in my 401k which I have been in for several year. I plan to bolster that amount from my IRA with enough funds that will balance out my tax sheltered money with my taxable funds. My plan admin approves of my transfer so I'm good there. If I leave my employer anytime next year (the year I turn 55) I can take full distribution of the funds. I know I will be taxed on the funds but my wages will be low if I leave employment. My company does not allow any payment plans - only lump sum of 401k funds upon leaving. Any gotchas that I need to be looking for? The IRS web site seems rather clear on the turning 55 in the year you separate from employment. I figure If I don't want to take it all in distribution I can roll some into my IRA.
The first of the year is fast approaching and I want to have everything pre-positioned.
The first of the year is fast approaching and I want to have everything pre-positioned.