Hitting 59 1/2 has some advantages, although it wouldn't be wise to take money from my 401k right now since most of it is in the stock market. But it's sort of freeing to know that I could, and not face a substantial withdrawal penalty. Those early withdrawal warnings always made me very nervous. So I'm happy to be 59 1/2 -- at least for that reason.
I know. . . It's very easy to please me. But the 401k account is supposed to be a next egg and since I'm still working, this is more of an academic exercise than a serious suggestion of tapping it early. I know I'll need the next egg. I just hope it isn't right away.
But all of us in this age bracket should start thinking about our financial situations, and get some expert advice. Don't rely on your brother-in-law or the Starbucks barista for financial information.
But there are two key ages to keep in mind: 59 1/2 when you can withdraw without penalty and 70 1/2 when you must begin taking withdrawals if you're not working at the company where you have the 401k account.
I you need to know anything else about your 401k, see an expert.
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Check out the stock market -- our 401ks are coming back, although they are not at the level they were before the crash. . . but we have a few years until retirement. . . Be patient.
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