401k Withdrawal Catch 22 - Early Retirement & Financial ...

Today, 05:38 AM	? #1
Recycles dryer sheets ? Join Date: Mar 2009 Posts: 239	401k Withdrawal Catch 22 I have run into an unforeseen problem while planning my 401k retirement withdrawals. I planned to retire at 57 and start taking partial withdrawals each year from the 401k.The plan allows withdrawals upon retirement at age 55 without the 10% penalty. I called Fidelity to confirm this since the plans summary discription was a little vague on the withdrawal side. I was told that I could take a withdrawal but it is the entire amount or take out an annuity. I guess I could roll it into an IRA and take 72t dstributions, but really don't want the hassle. Plus the plan offers institutional shares of mutual funds with miniscule expense ratios. Does anyone have experience with this issue? ' + '?' + google_ads[i].line2 + '?' + google_ads[i].line3 + '?' + '' + google_ads[i].visible_url + ' '; } } '' } if (google_ads[0].bidtype == "CPC") { /* insert this snippet for each ad call */ google_adnum = google_adnum + google_ads.length; } document.write(s); return; } google_ad_client = 'ca-pub-7757781251671730'; google_ad_channel = '3711355403'; google_ad_output = 'js'; google_max_num_ads = '6'; google_ad_type = 'text'; google_feedback = 'on'; // --> __________________ "What's the worst thing that could happen - I keep my job."
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Today, 06:23 AM	? #2
Recycles dryer sheets ? Join Date: May 2011 Location: South Eastern USA Posts: 380	The law allows the withdrawals after retirement during or after the year you turn age 55 but your 401k plan can limit the options. In my case the options were to take all or to set up a systematic withdrawal plan for either a set number of years or based on life expectancy. The alternative to 401k withdrawals is to rollover to an IRA and setup 72t withdrawals. One advantage of this is that you have greater choice of investment options for IRA vs you 401k plan and you can choose lower cost investments. YMMV ' + '?' + google_ads[i].line2 + '?' + google_ads[i].line3 + '?' + '' + google_ads[i].visible_url + ' '; } } '' } if (google_ads[0].bidtype == "CPC") { /* insert this snippet for each ad call */ google_adnum = google_adnum + google_ads.length; } document.write(s); return; } google_ad_client = 'ca-pub-7757781251671730'; google_ad_channel = '3568142076'; google_ad_output = 'js'; google_max_num_ads = '6'; google_ad_type = 'text'; google_feedback = 'on'; // --> __________________
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