The article discusses the importance of strategically timing withdrawals from retirement accounts to maximize savings and minimize taxes. It emphasizes that when rolling funds from a Roth 401(k) to a Roth IRA, requesting a direct rollover is crucial to avoid tax penalties that come from having the funds sent personally. Additionally, the article suggests that even during financial difficulties, such as down years, making a withdrawal can still be beneficial under the right circumstances.
Strategically timing withdrawals from an existing account can save you thousands.
If you're rolling the funds from a Roth 401(k) into a Roth IRA, make sure the check is sent directly to the new account to avoid paying taxes.
It may not be pleasant to experience financial difficulties, but it 'down years' could be the perfect time to make a withdrawal.
Consider a direct rollover when moving funds from a Roth 401(k) to a Roth IRA to avoid tax penalties.
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