401K
First of all I want to Thank You for your weekly spot on WGN and the knowledge you bring to your segment.
I am totally confused on the traditional 401K that I currently have. I have gone online and could not make heads or tails on when I can start taking out (72 or 73) and what taxes I would have to pay when I do so. I turned 71 on February 9th of this year.
Thank you in advance AND keep up the great job you do!!!
Terry Says
I am about to make your life a lot easier! It’s time to do a direct rollover of your 40l(k) account to a Rollover IRA. Here’s a column I wrote with complete instructions:
https://www.terrysavage.com/rollover-now/
You’ll have a wider choice of low cost investments which is better for you at this stage of life. Maybe put about 40% in an Equity-Income fund, and 30% in a money market fund, and 30% in a SHORT-Term government bond fund.
Then the year you turn age 73, the custodian (Fidelity of Vanguard) will calculate your Required Minimum Distribution and withhold taxes for you.
