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401K Withdrawal Rules





    Have you changed employers, or are about to?

    That are certain basic 401k withdrawal rules that you should know.

    Once you leave your employer, or, as I like to say, if "your employer leaves you", the rules fall under two general groups:


    1. If you are under 59 1/2 years of age, the general rules are:
  • Withdraw your funds with a 10% withdrawal penalty.
  • There is a 20% IRS withholding tax (for your annual income).
  • If greater than $5,000 you can leave it with your employer.
  • You can also rollover the funds into another tax sheltered program.


    2. If you are over 59 1/2 years of age, but under 70 1/2 years, the general rules are:
  • You can withdraw your funds without penalty.
  • There is a 20% IRS withholding tax (for your annual income).
  • If greater than $5,000 you can leave it with your employer.
  • You can also rollover the funds into another tax sheltered program.


    The Primary Difference


    As you can see, the main point is your age at the time of withdrawal. There is no penalty withdrawal after you are 59 1/2 years of age.

    "The 20% IRS tax applies regardless of your age." However, this is counted against your taxable annual income.

    If you are in the retirement period, then your taxable income may be less than it used to be. Thus you more than likely would pay less taxes.  Speak to your tax advisor (or accountant) to be sure--the regulations on this can and do change.


    A free Option

    There may be a free option here for you however.

    You can put your funds into a program that provides safe, guaranteed income.

    In fact, you can choose the time periods for your investment...

    And you have choices as to the interest that you receive.

    You can do all this with annuities...

    An annuity has significant benefts to your retirement financial planning.

    An immediate annuity can provide you with steady monthly income within about a month...

    And, a deferred annuity can grow large until you are ready to retire...

    Let our retirement financial advisor review your scenario and let you know your options...

    Get a free annuity quote - let us help guide you through the options to make the best choices for you!

    Or, get a free consultation from a Certified Financial Planner to go over your plans to help you make the



    best decision for your needs. 

    "You'll be glad you did the right thing."


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