How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask DanielleCPA Your Own Question

DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 683
Experience:  CPA experienced in tax and financial planning
Type Your Finance Question Here...
DanielleCPA is online now
A new question is answered every 9 seconds

how much can i withdraw from my 401K account at age 63 without

Resolved Question:

how much can i withdraw from my 401K account at age 63 without penalties. If I pay off the credit cards I can live at my current home with comfort. I will be working for a few more years and think that by contributing more into the 401K after bills paid off would help me catch up a little.
Submitted: 9 months ago.
Category: Finance
Expert:  DanielleCPA replied 9 months ago.

DanielleCPA :

Welcome and thanks for your question!

DanielleCPA :

If you are referring to the 10% penalty for early withdrawals from a 401(k) plan, that only applies to those under age 59 1/2.

DanielleCPA :

Because you exceed that age at 63, you will not have to pay a penalty tax, but will be required to pay income tax on any 401(k) withdrawals (assuming you made contributions pre-tax). 401(k) distributions are taxed at your regular income tax rate.

DanielleCPA :

Please let me know if you have any questions on any of the above information.

Customer:

due to the housing market and things are getting better in that area. Is my plan a good one. I think I can save if the debt is paid off?

Customer:

I currently make 60,000 year and my house payment is 928.00 month. and my taxes 8,000 year.

Customer:

are you there?

DanielleCPA :

Your plan might be a good one - but it would depend on the size of your 401k withdrawal and how much debt and the associated interest rates/payments.

DanielleCPA :

The biggest disadvantage to the withdrawal is that you lose the ability for those funds in the 401k to continue to earn and compound interest.

DanielleCPA :

That may be less of a concern, if, as you say, you are going to contribute larger amounts to your 401k plan going forward.

Customer:

Yes I plan on putting into the 401K more to what is comfortable. One whole paycheck goes to the credit cards I've had it. But since I cannot retire for a few more years? How to best calculate best plan. Ihave almost 100,000 in 401K

DanielleCPA :

If your whole paycheck is going to the credit cards, it probably would be most beneficial to pay off the debt. I can't crunch the numbers, as that would require detailed information about debt balances, interest rates, etc. and really is more than I feel comfortable discussing in an online forum.

DanielleCPA :

I would caution you to only take out what's necessary and to also consider taking out maybe part in 2013 and part in early 2014 to lessen the tax hit at one time.

Customer:

Thank you!

DanielleCPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 683
Experience: CPA experienced in tax and financial planning
DanielleCPA and other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney