Ask Terry Questions 401K investment Disbursement

401K investment Disbursement

By Terry Savage on April 12, 2023 | Financial Planning / Retirement

Having just starting to take social security benefits, I want to move my 401K portfolio in increments to lessen the tax burden. The provider, John Hancock, tells me I cannot take out the investment in increments of $5000. I must take it and move it’s entirety. What can you suggest so my pre-tax portfolio is not hit by tax all at once.

Terry Says

Just do a rollover, and when you’re 73 you’ll be subject to required minimum distributions (RMDs). No sense in taking money out and paying taxes now — unless you need it.
Read this article on how to rollover the entire 40l(k) plan directly to a new low-cost custodian, and choose more conservative investments during your retirement.

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