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Minimum 401K Withdrawal

By Terry Savage on November 16, 2021 | Financial Planning / Retirement

Last year I took my minimum withdrawal before the announcement was made that we did not need to take it in 2020. I don’t want to make that mistake again. So, my question is: Is the gov putting a hold on the minimum withdrawal for 2021 or do I need to take it before 12/31/21?

Terry Says

No holds this year. You MUST take the RMD before year end — based on the value of the account at the end of last year, December 31, 2020. Ask your custodian to calculate it for you.
And do consider rolling it directly into an IRA rollover account at Fidelity or Vanguard, as they have a wider choice of conservative funds. The only reason to stick with your employer’s plan at this stage is if they have some “special” guaranteed rate investments or company stock in the plan.

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