Taxes on RMD of 401k
Should we take federal and state taxes when asking for RMD check. Also is 20% a safe number to take for taxes
Thx so much
Terry Says
First, I strongly advise you do a ROLLOVER from your old 40lk account if you are now at this stage of life. The reasons are in this article, and I hope you’ll read it.
Investment choices inside 40lk plans are designed for younger workers who can take more risk. Doing a direct rollover to Fidelity or Vanguard (not using a broker) let’s you put it all in a money market fund, and then make decisions about how much, and how conservatively, SOME of the money should be invested in the stock market.
If you are already 73, they will require you take an RMD before doing a rollover. And yes, do ask them to withhold 20%.
