How to Efficiently Withdraw from a 401(k)?

11th Jan 2021
Retirement Planning Insights
6 Min Read

401(k) accounts are one of the primary retirement savings vehicles in the U.S. As of June 30, 2020, 401(k) plans had an estimated asset value of $6.3 trillion, which is approximately one-fifth of the total $31.9 trillion U.S. retirement market. Even though these accounts offer various advantages for retirees, they also have strict implications in terms of withdrawals. Improperly planned withdrawals from a 401(k) account can cause a big dent in your retirement savings, owing to the tax charges and penalties. However, if you plan prudently, it is possible to efficiently withdraw from a 401(k) without incurring any charges or impacting your retirement savings in the long-run.

Here is a guide that will help you efficiently withdraw from your 401(k) account:

To sum it up

Even though a 401(k) account offers numerous advantages and is widely popular among retirees, it cannot completely guarantee a secure retirement if you do not plan your withdrawals efficiently. Make use of the above-mentioned ways to structure and use your 401(k) distributions.

It is also a good idea to consult an experienced professional financial advisor to secure your golden years and ensure your 401(k) savings last for a long time.