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Old 11-08-2007, 06:47 AM
 
13,773 posts, read 33,929,958 times
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I have a 401K and at the age of 64 I wonder what the benefits are to leaving it in place vs taking a little at a time out and putting it someplace else.

I don't need the money right now and the 401K has done pretty good with a return of 10% mol total over the last 3 years.

Your thoughts are appreciated.
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Old 11-08-2007, 08:35 AM
 
Location: DC Area, for now
3,517 posts, read 12,057,804 times
Reputation: 2141
You have 6 more years to leave it untouched if you want to. At 70.5, the IRS wants the deferred tax money so you have to take some of it out. If you don't need the money, seems like a good place to let it rest until you need it or have to.
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Old 11-08-2007, 01:10 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,652 posts, read 40,020,325 times
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The usual risk is if the 401k doesn't offer adequate investment options. Mine does, so it stays there.

Another benefit is the 401K is not as likely to be 'attached' in a liability lawsuit, as an IRA will be. They did write a law to exclude 401K's from bankruptcy claims (because so many folks had 'rolled' to IRA), but AFAIK, the liability thing could be a "Gotcha". Do carry a personal liability umbrella also, and keep car liability at high levels, but... there are kinds of boogie-men lurking in the bushes.

You can currently 'Gift' to charities (tax free) from qualified accts. That is a great way to spend down. But I think that is going away with new congress.

janb
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Old 11-08-2007, 01:13 PM
 
Location: southern california
55,679 posts, read 74,671,253 times
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Quote:
Originally Posted by Keeper View Post
I have a 401K and at the age of 64 I wonder what the benefits are to leaving it in place vs taking a little at a time out and putting it someplace else.

I don't need the money right now and the 401K has done pretty good with a return of 10% mol total over the last 3 years.

Your thoughts are appreciated.
use it for buyback (tax free) lots of buyback goin on now in public service
governments are cash strapped.
thats my thing and thats how i do it
thats my story and im stickin to it.
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Old 11-08-2007, 04:48 PM
 
Location: home...finally, home .
8,236 posts, read 18,527,559 times
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use it for buyback (tax free) lots of buyback goin on now in public service
governments


What is that? I am not sure I know.
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Old 11-09-2007, 07:10 AM
NCN
 
Location: NC/SC Border Patrol
21,135 posts, read 21,902,046 times
Reputation: 23218
I will not be touching my 401 K until it is necessary or I reach 70.
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