Just a question…..59.5 years old and still working.…..can I take 100k, or any amount out of my 401k without the 10% penalty. Just a hypothetical question. I do not need the brown cafe “millionaires” club to chime in about how they have 5M in their plans and 4 houses they paid for in cash. I get it man.
401k at 59 1/2
- Thread starter textat3
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Over70irregs
Well-Known Member
Where are the old birds?
Yes if you are 59 and a half you can do an in-service withdrawal.
You don't have to take it out and spend it but you could move it to another plan if you wish
Over70irregs
Well-Known Member
Tax man cometh……
Thebrownblob
Well-Known Member
Head to the casino and double your money!!!
bottomups
Bad Moon Risen'
I won't touch my 401k until they make me take RMD's.
In-Service Withdrawal: Definition, Rules, Taxes & Penalties
In-service withdrawals are allowed under some retirement plans while an employee still works for the employer sponsoring the plan.
Or take it out and invest it in something safe while interest rates are still a reasonable rate.
Over70irregs
Well-Known Member
Lost powerball……. Again
Man I get it if that is your thing. I am sure from a financial perspective that is 100% the right thing to do. However, for me…I believe the sweet spot for having piece of mind, my health a good deal of financial security….the ability to live it up a bit if you will….is between 60 and 70. I’d rather blow a bunch of loot on a vette when I am 60, than on a conversion van with air lift suspension that is wheel chair accessible when I’m 72 because my knees are shot. I also don’t save for my kids. I have/am in the process of providing my kids with all the tools they need to be successful. Paying for college and instilling the old school work ethic that most don’t have anymore. It still matters. My children will also get my real estate which includes a property that was willed to me. They are also in the unique position to have wealthy, life long savers in their grandparents who will leave them a sizeable inheritance. Basically, my children at 50 will have a higher net worth than myself at 50 and that is awesome. I hope you live to 72 and maintain a healthy life so you can enjoy your 401k. I respect you choice, appreciate your input.
pkgdriver
Well-Known Member
It seems like @bottomups is enjoying life without depleting his 401k so far.
Whatever you decide to do talk to a financial advisor.
You want to try to minimize your taxes, taking too much out you will be giving a lot to Uncle Sam
You have two more years at the current tax rate before it goes up.
Or if you're still working just quit putting money into your 401k
KearsargeCoop
Baseball, dart board
I like this idea.
It's hard decision
People see all that money in the retirement plan and do not realize the consequences of pulling it out early
Over70irregs
Well-Known Member
Maybe they will do another 401k holiday like years ago. Cannot remember the name of it.
The pandemic
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