Category: Disbursements

  • Early Withdrawal IRA Rules for Senior Citizens

    I had a reader Wallace send in this question: What is the law regarding premature IRA CD withdrawals by senior citizens without penalty? Wallace, The law regarding premature IRA withdrawals depends on the type of IRA you have. If you have a Roth IRA, you can withdraw your principal without penalty as long as it’s […]

  • Fidelity, Vanguard Easily Manage Required Minimum Distributions

    After writing the article on required minimum distributions, I checked with some popular retirement brokerages and saw that many of them handle required minimum distributions quite gracefully. At Vanguard, they will: * Calculate your RMD. Each January, we’ll notify you by mail of the amount you must distribute by year-end. * Distribute your RMD, if […]

  • 4% Retirement Withdrawal Rule

    In yet another one of Walter Updegrave’s retirement columns, I was introduced to the 4% withdrawal rule for your 401K. Basically, the rule is based on running Monte Carlo simulations (computer simulations of the probabilities dealing with the markets) where if you withdraw only 4% of your retirement assets each year, there is an 80% […]

  • Withdraw From Tax Deferred Accounts Last

    When it comes time to begin taking disbursements from your retirement accounts, try to take them from your tax deferred or tax free accounts last (401k’s, Roth and Traditional IRAs) because you want them to grow tax-free as long as possible. If you opt to retire before 70.5, the age at which mandatory disbursements begin, […]

  • Name Your IRA Beneficiary

    It is critically important that you properly name your IRA beneficiary because, in the event of your demise (which will hopefully happen very far into the future), the tax ramifications change based on who you name as your beneficiary. Usually, your spouse, if you have one, will be able to inherit your IRA without any […]

  • Reasons To Take The Lump Sum

    When it comes time to cash out your retirement, it usually comes down to a decision of whether you want to take a lump sum or income for life (or a mix of both). Here are some reasons why you should consider a lump sum. 1. You can control your investments If you take the […]