What to do with your 401k When you Retire ? | On The Money
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- čas přidán 12. 10. 2023
- In this video Ryan discusses several crucial strategies concerning the management of a 401k retirement plan were discussed to guide retirees on navigating their financial path post-retirement. Ryan delineated numerous options that retirees have, including taking a cash taxable distribution, which is not recommended due to its substantial tax implications and potential to significantly diminish future income. Another option entails leaving the money in the existing 401k plan, which might be sensible under certain conditions, especially for individuals retiring around age 55 due to the advantageous age 55 Rule that negates the 10% IRS early withdrawal penalty. A third viable strategy involves executing a tax-free rollover to an Individual Retirement Account (IRA), providing broader investment possibilities and increased financial flexibility. Moreover, conversion to a Roth IRA and managing Net Unrealized Appreciation (NUA), particularly for those with abundant company stock in their 401k, were discussed as strategies to enhance tax efficiency and financial management in retirement. Ryan emphasizes considering the particular circumstances, tax implications, and potential benefits while opting for any of the strategies, advocating for a thorough understanding of each to secure a financially stable retirement.
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If you have any questions, please post them below
If you leave in a 401K, don't you usually pay lower account maintenance fee vs rolling it out to a personal IRA? I know you get more options in the personal IRA in terms of investment.
In some cases yes and in some cases no. That is why it is good to work with a Fiduciary. They will compare the fees on your current 401k and other options. You are correct there are far more options in and IRA versus a 401k. Many thanks for watching and commenting. @@roniltataria8712
Money in 401k I was told can be exempt from lawsuits. If you move it to IRA do you retain this protection?
I have been working diligently, saving and contributing towards early retirement and financial freedom, but most times I wonder what I would do with my 401k after retirement to meet my goals. Do I keep contributing to my 401k or look at alternative sectors to meet my goals now.
Keep contributing! remember you are in for the long haul. I'd suggest you consider financial advisory at this point in time
@@richardlewis9309Without a doubt, getting proper financial advice cannot be overemphasized, my portfolio is well-matched for every season of the market and has just yielded 125% from early last year to date. I and my coach are working on a 7 figure ballpark goal, though this could take another year.
@@richardlewis9309 No doubt, getting proper financial advice is invaluable, my portfolio is well-matched for every season of the market and has just yielded 125% from early last year to date. I and my coach are working on a 7 figure ballpark goal, tho this could take another year.
@@richardlewis9309 No doubt, getting proper financial advice is invaluable, my portfolio is well-matched for every season of the market and has just yielded 125% from early last year to date. I and my coach are working on a 7 figure ballpark goal, tho this could take another year.
@@richardlewis9309 No doubt, getting proper financial advice is invaluable, my portfolio is well-matched for every season of the market and has just yielded great returns from early last year to date. I and my coach are working on a 7 figure ballpark goal, tho this could take another year.
Converting my 401k to a Traditional Roth with Vanguard was the best financial decision I made 17 years ago. No tax worries for the rest of my life.
I appreciate the THOROUGH discussion of the different options ... thank you VERY MUCH
I am super happy with the many investment options in my companies' 401K and at least for the short term plan on leaving it there and letting it grow.
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
Thanks for posting this. 👍
The very few options in my wifes account were not doing good, always in the red. Rolled it into an IRA making 5.2%. Left the 401 open with the best they had, most days still in the red.
Many thanks for commenting and watching.
I have an employee sponsored low fee 401k. Upon separation I will be forced to do something with that money. I was going to bite the bullet and convert it (500k) to a Roth and pay the taxes but now think it makes more sense to do a regular Roth to avoid the tax implications. Do you agree and do you have any recommendations on low fee alternative broker that I can research? I am currently tied to vanguard.
The outfit my 401k is in is stuck in 1980. The only way to get the money moved to Fidelity or say Vanguard is a check in the mail that has the great potential of being lost or stolen. Worse, the process according to the 401K provider, can take up to a month. WTH!!
I would call Vanguard or Fidelity, I bet they can make it happen direct form your employer to them without mailing a check.
What about the fees/taxes with the rollover 401K
No taxes are due in most cases on a 401k rollover. There usually are no fees to roll the funds over. Though the fees in the new IRA account the 401k funds are rolled over into may have higher fees than the 401k plan.
Good stuff❤🎉😊
how do i roll my 401k into an IRA when there is a $7000 limit?
Money in 401k I was told can be exempt from lawsuits. If you move it to IRA do u retain this protection?
Good point
It depends on the state. The information is on the internet but better yet talk to a Google financial advisor.
Awesome
I think that if you do a tax free rollover to IRA from a 401k or 403b type funds and you are in the rule of 55, those funds that were “freely liquid” are now locked until age 59 1/2. People try to save on fees in work retirement funds and don’t look at all the variables or ask the proper questions. I think people try to save on taxes. So they want to Roth convert. You pay taxes on any money you convert up front and to could also affect Medicare payments by making them go up. There is a whole slew of things the government has already figured out. Goes the sayings that “if it’s too good to be true” and “nothing in life is free”. Do tons of research before doing anything. Your money won’t go anywhere till you change it. $1 in inflation is still $1. Just buy less.
I noticed that too. What would you do with the freely liquid money?
@@lettyortiz9700 I would leave it in and use it for expenses, pay down high debt or keep it invested if your company plan allows it. Just remember, any money taken out of account is still taxed at your income level. Like a paycheck. Just check on rules and restrictions of your companies plan for rule of 55. Plans can vary from company to company. The money in the accounts should be considered for retirement and not just fun money, but surviving is the most important thing. I hope some of this helps. Some plans have advisors that can help. Have a nice day.
Is it the age of 55 or the age of 59 1/2 when you can get the 401l without penalty??
59 1/2
Google "rule of 55"
Spend it 😁