401k at 73
I have $80,000 in my 401(k). I know I need to take a distribution this year. Should I take the yearly distribution or roll it over? I was looking at MNL index builder 10. I don’t need the money it would just be going into a savings account if I take the distribution Thanks
Terry Says
First, read this guide that I wrote for people in your situation:
https://www.terrysavage.com/rollover-now/
You MUST take your RMD BEFORE you can do a rollover!
Remember, you’ll have to pay taxes on that RMD, so ask them to withhold at least 15% taxes (or more if you have other income) on the distribution. Then you can save or spend the rest of it.
Second, you don’t want to pay fees and get locked into a product when you roll your IRA — so stay away from annuities. Just roll to Fidelity or Vanguard, and put about 1/3 in a money market fund to diminish market risk.
