401K distributions before age 70 1/2 RMD's

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Frisco Kid
Posts: 410
Joined: Sun Nov 16, 2014 6:18 pm
Location: San Francisco Peninsula

401K distributions before age 70 1/2 RMD's

Post by Frisco Kid » Tue Nov 06, 2018 8:24 am

How much flexibility at age 65 do we have in taking 401k distributions? Can we choose what we sell and when or do we need to rollover to an IRA?

Silk McCue
Posts: 4677
Joined: Thu Feb 25, 2016 7:11 pm

Re: 401K distributions before age 70 1/2 RMD's

Post by Silk McCue » Tue Nov 06, 2018 8:35 am

There are no restrictions on taking distributions from your 401k at your age. You can choose what you sell and when. You just have to pay the tax man.

Cheers

Spirit Rider
Posts: 13177
Joined: Fri Mar 02, 2007 2:39 pm

Re: 401K distributions before age 70 1/2 RMD's

Post by Spirit Rider » Tue Nov 06, 2018 8:39 am

Correction, there are no IRS restrictions after age 59 1/2, but the 401k plan itself can have restrictions on distributions.

Many plans only offer fixed montly, quarterly, yearly or lump sum distribution options. If the options available do not meet your needs, you will have to do an IRA rollover and freely distribute from there

Silk McCue
Posts: 4677
Joined: Thu Feb 25, 2016 7:11 pm

Re: 401K distributions before age 70 1/2 RMD's

Post by Silk McCue » Tue Nov 06, 2018 8:46 am

Spirit Rider wrote:
Tue Nov 06, 2018 8:39 am
Correction, there are no IRS restrictions after age 59 1/2, but the 401k plan itself can have restrictions on distributions.

Many plans only offer fixed montly, quarterly, yearly or lump sum distribution options. If the options available do not meet your needs, you will have to do an IRA rollover and freely distribute from there
Thanks for the correction Spirit Rider.

Cheers

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