Avoid Penalties By Learning These Important Early 401(k) Withdrawal Rules

There are rules which can be followed to allow pre-mature access to your 401(k) account. A 401(k) was created by congress to allow workers to accumulate funds for retirement on a pre-tax basis. Eventually he taxes will need to be paid on your 401(k) retirement plan. Accessing the funds should be done with planning and with the goal of using them for retirement income. Life being full of uncertainty, the funds in your 401(k) can be assessed for other reasons; with that access can come unwanted or excessive taxation and penalty. Make sure you fully understand your options before taking action.

By |2020-04-12T23:30:42+00:00April 25th, 2019|401(k) Rollovers|

Roth IRAs, IRAs, 401(k) and Account Conversions

The big difference between the Roth IRA and other retirement accounts is that rather than receiving a tax break for monies placed into the account, you receive the tax break when you withdraw the money. Why is this difference important? Like any other choice based around tax issues, the more funds that have a tax advantage, the better the net results. Using a Roth IRS’s long term accumulation allow for blending this tax free income with other assets which may have more tax liability.

By |2020-04-16T18:30:12+00:00March 21st, 2019|Financial Planning, Retirement Planning|