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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12686
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am 63 years old and want to withdraw $8000 from my 401K

Customer Question

I am 63 years old and want to withdraw $8000 from my 401K how should I do this
JA: The Expert will know how to help. Please tell me more, so we can help you best.
Customer: Want to with draw 8000,from 401k
JA: Is there anything else the Expert should be aware of?
Customer: I am 63,and recieving ss,and work 2 days a week
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi My name’s Lane - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

Expert:  Lane replied 1 month ago.

Each 401(k) has it's own plan document (the document that governs the plan and it's procedures & design) ... But all 401(k)s have a distribution form (you can get this from the plan administrator - many times their phone number is ***** your statement).

...

But many plans also have an online portal where you can request the distribution, and if your 401(k) uses one of the larger companies such as Fidelity, you may also have a 1-800 number that you can call to request the distribution.

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Each of these options will have a section (or questions about) (1) the tax you want withheld - 20% is required, but you can withhold more, and (2) whether you want the proceeds in a check or rolled into an IRA.

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The distribution, for someone over age 59 and 1/2, is taxable (the amount will be added to other income on your tax return and taxed, just as if you had a second job) but there is no additional 10% tax penalty, as there is for one under age 59 an 1/2.

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Please let me know what questions you have from here.

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I'll be here,

Lane