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Personal Finance (Not Investing) • Beneficial to do $1 withdrawal from employer 401(k) at reaching age 55 !?

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Friend should get a copy of the Summary Plan Description to read all the rules for their plan.

Employers aren't required to make it easy for you. Some allow only one withdrawal, not periodic smaller withdrawals like you'd prefer. Generally you won't want to withdraw everything in your account all at once, you get hit with a large tax bill, and you'd lose the tax free growth aspect of keeping those $$ in the tax deferred account for many years.

My DH asked about this at his last employer. After separating after 55 he could withdraw penalty free, but it was all or nothing - one withdrawal allowed. Not useful. So we are doing a Roth conversion ladder. But we have many years of past Roth contributions that we can withdraw while waiting for conversions to season 5 years.

Statistics: Posted by teen persuasion — Tue Dec 12, 2023 11:05 pm — Replies 9 — Views 617



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