Decisions surrounding retirement can impact the rest of your life, and the sooner you get started planning for retirement, the better. Here are three questions to ask yourself sooner, rather than later, for the sake of your 401(k).
Have I really taken advantage of my 401(k) match?
Many do not realize the full benefit of taking advantage of matching contributions. Every time your employer matches a payment, it adds to your bottom line. These additions add up significantly over time, and can have a major impact on your retirement savings.
Should I withdraw my contributions early?
Withdrawing early is considered a “premature” distribution and is subject to an additional 10% tax. This means that even making one withdrawal before the age of 59 ½ will cost you close to a third more than your original withdrawal, ultimately losing you more money and negatively impacting the health of your 401(k).
When should I roll over my 401(k)?
You have 60 days from the time you receive your funds to roll them over into another qualified plan. If you wait longer than the 60 days, the IRS will consider your funds as ordinary income, and will tax you for the full amount. On top of this, if you are under the age of 59 ½, the IRS will also consider the funds a premature withdrawal, and charge you an additional 10% tax placed on such withdrawals.
If you have any questions or concerns about your retirement and wealth management strategy, please call Mooney Lyons at 1-847-382-2600, or visit us at mooneylyons.com.
About Mooney Lyons
Mooney Lyons founded by Joe Lyons CFP®, and Keith Mooney CFP®, ChFC and CLU®, both 20 year plus financial services veterans committed to offering personalized approaches that strive to maximize wealth and minimize risk dependent on the financial stages each of our clients will experience. Our approach, The Integrated Wealth Model, is a complete wealth support platform that spans the entire financial spectrum for you and your family. For more information contact Mooney Lyons at 847-382-2600 or visit www.mooneylyons.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
No strategy, including diversification and asset allocation, assures success or protects against loss.