Liquidating an old 401k
But first a note on tax deferred accounts in general.
You can debate the merits of Roth versus traditional IRAs and 401ks all you want, but know that we saved well over a hundred thousand dollars in taxes by maxing out tax deferred options.
Convert another ,000 in 2016, pay the tax (if any), then you have ,000 to withdraw in 2021.
Convert another ,000 in 2017, pay the tax (if any), then you have ,000 to withdraw in 2022.
Take a look at that table and you might notice two problems.
First, there’s no money to provide for living expenses in years one through five.
A leg, from just above the knee down to the foot, is about ten percent of a human’s body weight.I want to tell you a story about accessing tax-deferred funds in an IRA or 401k before age 59.5 without paying a penalty. A trapped animal will do just about anything to get free.