By Terry Savage on February 24, 2024 | Financial Planning / Retirement

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:

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.

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