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I am 70 1/2 but working full time. A prior company I worked…

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I am 70 1/2...

I am 70 1/2 but working full time. A prior company I worked for informed me I have retirement benefits that I can withdraw now from the company. Do I have to take them now or can I wait till I retire from working and then take them when my income will be less? Since they are just retirement benefits and not an IRA or 401K would there be tax penalty if I wait?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

No. as I said I am employed full time and just not ready to retire. I did not even know the former company was putting money into a retirement fund for its employees.

Submitted: 26 days ago.Category: Tax
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Answered in 14 minutes by:
3/26/2018
Tax Professional: Lev, Tax Advisor replied 26 days ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,687
Experience: Taxes, Immigration, Labor Relations
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You cannot keep retirement funds in your account indefinitely.

You generally have to start taking withdrawals from your retirement plan account when you reach age 70½.

If you ant to defer your mandatory distributions - you may transfer all funds to your current employer's 401k plan.

That will allow you to keep the money in the plan as long as you are working with your current employer.

Otherwise - you are subject to RMD - required minimum distribution - that is the minimum amount you must withdraw from your account each year.

Let me know if you need any help with determination.

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