what are the rules for retiree to cash out 401k

gj3823 · Joined: 12 Jun 2009 Posts: 2 2.15 Dollars($)

I just retired from work and no longer employed, would like to start taking cash out from 401k which i have two of them... one is around 45 thous and will use it for remodeling in kitchen and windows so i can kick back to relax and enjoy my remaining years left. Its such a crap how the government has to take our hard working money whether we cash out or monthly usuage. what are the advantage and disavantage of doing this. i dont want to die leaving any of my 401k i deserve to use it very well.

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

gj3823

Welcoem to the forum

If you are one of the luck one whohc is able to reire before 59 and 1/2 then congratulations. But if you with draw money in this situation you will pay taxes on this and also 10% penalty

If you are 59 and 1/2 or above on the coomon rules is to roll over the money to an IRA accoutn where you can control how and where you invest.

Also common rule is to with draw 4% every year so you pay taxes on just the money you with draw and your money can last for more years

Congratulation and good luck

feeel free to ask

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