On 11/17/2019 11:46 AM, Ed Pawlowski wrote:
On 11/17/2019 11:47 AM, Ralph Mowery wrote:
In article , "frank says...
I see you are in Oz. Our 401k savings can be held without taxing
interest. You cannot take it out without penalty until you are 70+ and
then withdrawals are taxed as income. We also have retirement cd's with
same rules. There is a required minimum withdrawal each year of
about 4+%.



Frank, the age to withdraw without penalty is 59 1/2 if you are talking
about the US 401k.

I started taking mine out at age 65 and there is no penalty.

It may be that you are thinking about the hit on social security.




If you did NOT take 401K or IRA funds out there is a penalty at age 70
1/2. The government wants to start taxing you.

I worked to 71 so did not want or need the money but had to take a
minimum at 70 1/2. I've still not touched my IRA but Fidelity sends me
a check every year from age 70.

Penalty is 50%.
https://www.thebalance.com/required-...utions-2388780

I'm in the same boat, but even worse I am still working. The RMD is
automatic and I have money withheld from both that and the SSI payments.
This state also taxes SSI income so April isn't a happy time for me.

The theory is your income will be less overall so the tax rate will be
better but it doesn't always work that way.