401K Withdrawl

[IVE GOTTA PACKAGE 4U]

Pot, meet kettle.

Look at you.

Spending your time trying to think you are somebody important


You better call your financial advisor and figure out your RMD Gramps

 

[scratch]

If you are having a hard time coming up with 15k maybe you should reconsider retiring.

Its not that I am having a hard time getting money, its just I want to figure out my best options. I have until Spring to to sign a contract, the builder has about a five month build time with their current rate of presales.

 

[rod]

It sounds like its more he is short of liquid assets. Not that he doesn't have money.

No cans buried in the back yard?

 

[oldngray]

No cans buried in the back yard?

He still needs to dig those up.

 

[Jkloc420]

Its not that I am having a hard time getting money, its just I want to figure out my best options. I have until Spring to to sign a contract, the builder has about a five month build time with their current rate of presales.

should just get an rv and drive cross country

 

[IVE GOTTA PACKAGE 4U]

Its not that I am having a hard time getting money, its just I want to figure out my best options. I have until Spring to to sign a contract, the builder has about a five month build time with their current rate of presales.

Buy a Powerball ticket?

 

[IVE GOTTA PACKAGE 4U]

should just get an rv and drive cross country

Or move in with you..

 

[Jkloc420]

Or move in with you..

he gots a lot of money

 

[scratch]

I have stocks and investments I can sell but I really don't want to get into those. I have plenty of equity in my current home so it would be just a few months and I could pay off pre-construction loans at closing.

 

[Jkloc420]

I have stocks and investments I can sell but I really don't want to get into those. I have plenty of equity in my current home so it would be just a few months and I could pay off pre-construction loans at closing.

how about a tiny house

 

[IVE GOTTA PACKAGE 4U]

I have stocks and investments I can sell but I really don't want to get into those. I have plenty of equity in my current home so it would be just a few months and I could pay off pre-construction loans at closing.

Sounds like you have a lot of good options

 

[scratch]

Sounds like you have a lot of good options

I could sell my UPS stock before Amazon puts us under!

 

[IVE GOTTA PACKAGE 4U]

I could sell my UPS stock before Amazon puts us under!

Good plan!

 

[toonertoo]

I would just take the loan option, and when you retire, you can pay it off, they will take it out of your 401k anyway, once you retire

 

[toonertoo]

and the rate is really low

 

[ronjohn]

....true but you still have to pay the 20% Federal tax withholding...

The loan is the best option in this case.

you'll pay taxes on retirement income and any IRA disbursements it's tax deferred not tax free, ever work a day and not pay tax????

 

[UpstateNYUPSer(Ret)]

you'll pay taxes on retirement income and any IRA disbursements it's tax deferred not tax free, ever work a day and not pay tax????

Yes, I will pay taxes on distributions from my Traditional IRA. The big selling point of a 401k or Traditional IRA is that the taxes should be lower when you retire as your income is normally lower.

I have been slowly converting the funds in my Traditional to my Roth. I have 20% withheld for Federal taxes and will get most of that back when I file. The funds in the Roth can then be withdrawn tax free.

 

[CoffeeStainedUniform]

I have a question about taking money out of my Traditional 401K. I am currently working and 61 years old. I am thinking about retiring August or October of next year. We are looking at building a new house in an Active 55 Retirement Community and moving then. I want to take some money out of my 401K next Spring as a down payment to start construction before I sell my current home. So my question is can I take some out just for that or do I have to make myself a loan and pay it back to myself?

The real problem with withdrawal is you wouldn't be able to get that money back in the 401k after the sale of your house. I'd recommend the 401k loan...though it's almost never a good option.

 

[cachmeifucan]

I think you pay 6% on a loan from 401k. So just pay it back right away and the way I was explained was that your paying yourself the 6%. Not that much interest on 15,000 for a couple months vs. All other options

 

[IVE GOTTA PACKAGE 4U]

Yes, I will pay taxes on distributions from my Traditional IRA. The big selling point of a 401k or Traditional IRA is that the taxes should be lower when you retire as your income is normally lower.

I have been slowly converting the funds in my Traditional to my Roth. I have 20% withheld for Federal taxes and will get most of that back when I file. The funds in the Roth can then be withdrawn tax free.

That's a big mistake at your age.