401k Trap Don't Give Away Your Savings to Taxes

Описание: As you probably know, at age 73, you are required to take withdrawals from your traditional IRA or 401k. Not taking withdrawals as required will result in up to a 25% penalty on the amount of the required withdrawal. This is real money, particularly to a retiree. In addition, all withdrawals are taxable as ordinary income, so ensuring that they happen when you have the lowest tax consequence is critical. It's better many times to take the withdrawals before you go on Social Security so you keep your tax rate low.