Take Required Minimum Distributions
If you’re aged 72 or older, you have to take the required minimum distributions from your 401(k) account every year. You don’t actually have to touch it until you turn 72.
If you stay with your job past age 72 and don’t own 5% or more of the company, you might be able to continue to delay 401(k) withdrawals while you’re working if your plan will allow it. Distributions from standard retirement accounts count as income.
Make sure you plan out when to begin taking the distributions to lessen the impact of taxes. A fee-only financial planner or accountant can help you determine the best way to maneuver the tax impact of your decisions.
For some more official information regarding your plan, be sure to check with the IRS and stay informed of your options!
If you want to stay up to date on everything related to your retirement life, we’ve got lots of useful articles for you to read. Including this one: 5 Best Spending Strategies in Retirement
