Aug 11, 2017
How to get the most out of your 401(k)’s and IRA’s, including
withdrawing, roll over strategy, and how to avoid paying more than
Main Questions Asked:
- Why is the age 70 and a half so important?
- Why are withdrawals required?
- Does this apply to all retirement accounts?
- Do you have to take some money out from every account you
- What are the advantages and disadvantages of rolling over a
401(k) into an IRA?Key
- At 70.5 years-old you lose some flexibility and control over
your retirement accounts because that’s when the IRS forces you to
- You can save money on taxes by saving money within a 401(k) but
the IRS eventually wants their money; therefore, the tax break has
to end at some point.
- Nearly all retirement accounts fall under this requirement
except for Roth IRA’s, the Roth portion of your 401(k) or life
insurance plans designed for tax free future income, and certain
types of annuities.
- The IRS only cares about the total amount withdrawn from your
retirement accounts, but many people find it simpler to just
consolidate their accounts.
- There is nothing wrong with someone trying to minimize the
amount they pay in taxes, but it’s important to be prepared before
you have to act by finding an expert that can show you the way.
Saving for retirement alone isn’t enough.
Rolling Over Accounts
- Most people eventually roll their money from a 401(k) into an
IRA to not get locked into what’s available on the 401(k) menu, but
the move is not for everyone.
- The important thing is what you get to keep at the end. You
need to sit down with an expert and run the numbers to see what
makes the most sense.
- Many smaller businesses may have very high cost
- Some people have accumulated many accounts from many different
- This can open you up to more risk than you realize.
- An IRA will often give you more flexibility in the person that
manages your account as well as the timing of your
- You should have a balanced approach and understand the pros and
cons, rolling over everything into an IRA is not always the best
move. It’s best to talk to an expert that can help you plan and
review your retirement strategy.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!