Summary: Moving or withdrawing your entire retirement account will result in owed income taxes. If you’re ready to retire, a financial advisor can help you set up your accounts to help you live.
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 interest, 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).
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Comments
financial advisor says
There might be many complicated issues. For very few people, it might make sense to withdraw retirement money, including penalties, to pay off debt, but for most people, this is the last money you should touch. You also need to find a financial advisor (another website is http://www.claroconnect.com ) to figure out whether your retirement plan is even on track and you can indeed live off the earnings and interest from an appropriate balance of investments in your retirement plan.