I,m 56. want to retire next April. Will get 525k lump sum retirement. Also have 325k in 401k. I want income the moment I retire. Do not want to leave any money, except to my wife (beneficiary) when I am gone. NYS resident.
If the $500K lump sum is from a pension plan, your soon-to-be-former company should automatically deposit it into your 401K. (that's what mine did).
My understanding is that under some circumstances if you retire after 55 you can withdraw from a 401(k) -- but not an IRA -- without penalty (of course, you have to pay taxes). The other alternative is the 72t.
If the $500K lump sum is from a pension plan, your soon-to-be-former company should automatically deposit it into your 401K. (that's what mine did).
From there, its up to you taxwise.
If you have no other post tax assets, I"d look into options as pb4uski suggests.
I am pretty sure you mean IRA and not 401K, or am I missing something ?
I,m 56. want to retire next April. Will get 525k lump sum retirement. Also have 325k in 401k. I want income the moment I retire. Do not want to leave any money, except to my wife (beneficiary) when I am gone. NYS resident.
My thought was to roll over the 525K, I don't need that money right now, if i can withdraw from my 401 without the 10% hit.