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"when to withdraw from 401 "


  • #1
    Posted: Mar 10, 2009 10:54 AM
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    Williamsburg, VA
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    The answer depends upon your need for retirement income. The 403b is for tax deferred savings. If you take it all out, it will all be taxes and no longer be a valuable tax deferred savings vehicle. If you are thinking about this because of the market volitility, then you should be able to invest in something less volatile in the 403b.

  • #2
    Posted: Jun 08, 2009 08:51 AM
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    Columbus, OH
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    You may wish to start the process sooner rather than later - many 403B's are invested with TIAA-CREF, and I'm getting reports that it can take time to get money out from them. You could roll it over into an IRA, and continue deferring taxes until you start drawing from the IRA, or into a Roth IRA and take the tax hit now. It is unlikely that tax rates will decrease in the future, so taking the hit now could save you in the long run - if you are in a position to pay the taxes on the front end.

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