Matthew Frankel The Motley Fool Published 10:00 p.m. UTC Aug 17, 2018 Question: I have enough money to retire, but I'm not 59½ years old yet. Will I get penalized for retiring and tapping into my 401(k)? Answer: No, not necessarily. There are provisions in the 401(k) rules that can allow early retirees to use their funds before the typical retirement savings minimum age of 59½ years old. If you're at least 55 years old, you can take advantage of the "separation from service" rule if you retire early. This says that as long as you're no longer working for the sponsoring employer, you can use your qualified retirement plan assets without a penalty. This exemption applies if you retire early or if you get downsized or otherwise lose your job. Second, you can choose to use the "substantially equal periodic payments" (SEPP) exception at any age, which allows you to withdraw from your 401(k) in an annuity-like manner without penalty. Annual withdrawal amounts are set by an … [Read more...] about Will I get penalized for retiring early and tapping into my 401(k) plan? Ask a Fool
401k 55 years old rule
Every week, Simply Money’s Nathan Bachrach, Ed Finke and Amy Wagner answer your financial questions. If you, a friend, or someone in your family has a money issue or problem, please feel free to send those questions to [email protected] Robyn in Alexandria: I’m about to switch jobs and I’m not sure what to do with my old 401(k). What do you suggest?Answer: First, find out if you’re "vested" in your current plan. Vesting means you have full "possession." If you're 100% vested in your account balance, you own 100% of your account. If you’re not 100% vested when you leave, you may have to surrender some of your account balance (this applies only to any company match or profit sharing you may have received; whatever you’ve contributed yourself is always yours). You want to fully understand how much of your account balance you own before moving forward.There are typically a few ways your vesting program can be structured, which are … [Read more...] about Simply Money: What to do with an old 401(k)
Among Americans who contribute to 401(k) or similar retirement plan, the most common contribution amount is just enough to take advantage of the employer match. For example, if an employer is willing to match its employees' contributions dollar-for-dollar up to 5% of salary, the average worker will contribute 5% of their salary to take advantage.While this is certainly a good start, you're allowed to contribute a lot more to your 401(k) than your employer is likely willing to match. Here's how much you could end up with if you decide to max out your 401(k) contributions in 2018, and every year after that.For the 2018 tax year, American workers under 50 can choose to contribute as much as $18,500 to their 401(k), with an additional $6,000 "catch-up" allowance if you're 50 or older.Keep in mind that this doesn't include employer matching contributions or any non-voluntary contributions -- it's just the money that you choose to have withheld from your paycheck and invested in your 401(k). … [Read more...] about How much will I have when I retire if I max out my 401(k)?
Changing jobs is exciting, but there are some practical things you have to deal with, like what to do with your old 401(k) plan. You have the option of leaving your funds in your old 401(k) plan, but there are a few downsides to doing that: You can no longer contribute to it and you'll have multiple 401(k) plans floating around you need to keep track of. It's "definitely an option," certified financial planner Nick Holeman tells CNBC Make It, "but typically, the downsides mean it's not the best option." Here are two alternatives to leaving your money with your old company: 1. Roll over your 401(k) to your new employer's plan Assuming your new employer's plan accepts rollovers, "this is a good option if you like … [Read more...] about Here’s how to roll over your 401(k)
If you don't see images in this message, click "Display Images" or the equivalent.Click hereGet the Nooner in your e-mail box. Become a Nooner Premium subscriber to access exclusive election analysis and back end data. | Follow @scottlayAdvertise in The Nooner to reach over 8,000 readers REMINDER: My [email protected] email address is still in DNS hell. [email protected] (where that other email usually goes anyway) is working just fine. FIRES: The number of unaccounted individuals is down to 158 and there are no new fatalities reported today. CALFIRE has stopped updating the breakdown of structures destroyed numbers as the incident has largely been handed off to locals and now just has the total, which stands at an astonishing 18,804. Camp Fire: 88 fatalities, 18,804 structures destroyed; 153,336 acres; 100% contained DEADLIEST WILDFIRES IN CALIFORNIA RECORDED HISTORY OVER THE LAST 13 MONTHS: #1 Camp Fire (Butte): 88 deaths (November 2018) … [Read more...] about THE NOONER for 11-28-18