Q: I am 60 years old and I’m thinking about retirement. I need information about where to move my 401(k) money, so I can live off the interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds., and not have to pay taxes when I move it.
A: Unfortunately, any time you withdraw cash from a 401(k) or other tax-deductible, tax-deferred retirement account, you’ll owe income taxes.
Please talk to a fee-only financial advisor who can (for an hourly fee) walk you through this important transition time. You can find someone through the National Association of Personal Financial Advisors (www.napfa.org).