Distributions from Your 401(k) at Retirement
- Introduction
- Lump-Sum Distribution
- Annuity Distribution
- Rollover to a Traditional IRA
- The Roth IRA - How Does It Fit In?
- Rollover to another Retirement Plan
- Mandatory Withdrawals
Rollover to a Traditional IRA
If you don't need your retirement money in a hurry, rolling it over into a traditional IRA may make sense. Instead of putting the money into a bank account and paying tax on the earnings, you can defer taxes on both the contributions and the earnings if you put the money in a traditional IRA. It is to your advantage to make it a direct rollover. This way, you don't have to get involved in the transfer and no taxes will be withheld.
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Sandy M. Penchansky, CFP®
Infinex Financial Advisor
617-928-2349
60 Main Street
Watertown, MA 02472