required distribution starting at age 72!
My wife and I have acquired $1300000 in 401k, ira, and annuties.
We hear at 72 we will have to withdraw a large portion starting at that time. This would also require us to pay large sums of taxes. What should we do, we are scared to death after
a lofe time of being carefull with our money!
I pray to hear from you!!!
Terry Says
The government wants its money! It allowed you to grow those contributions tax-DEFERRED, and now it’s time to pay up. This is where a good financial planner can really help. Click on the link in one of the blue boxes at the top right of the home page on my website to find one you can trust.
Basically though, this is the time to roll over your old 40l(k) plan to a Rollover IRA — assuming you’re not still employed. Fidelity or Vanguard will help you take that step. Then, they will calculate your RMD based on ALL your IRAs. YOu can take the money out of any of them — or a bit from each — as long as you pay the full amount. And yes, this distribution is taxable.
The annuities are a different story — unless you bought them with IRA money. It might be time to start taking withdrawals now, so you maximize the benefits — unless there is a death benefit and you want to leave them to your children. But it’s a good time for an annuity review. My expert on that subject is Jeffrey Oster and he can be reached by email at: Jeffrey.Oster@raymondjames.com.
Finally, if all those zeros are correct, you amassed a nice sum of money — in addition to SocialSecurity. So don’t be scared. Just get a review from a FIDUCIARY financial planner. You have more than enough to make your money last as long as you do — even with taxes!
