In this episode of ‘Inside the Plan with the 401(k) Brothers’, Bill Bush and Andy Bush, advisors at Horizon Financial Group answer some of the participants' questions on Financial / Tax / Retirement Planning from their recent meetings.
Episode Highlights:
- 01:30: - Andy and Bush answer the first question which comes from a participant, “How much tax will I pay when I withdraw from my 401(k)”?
- 03:30: - They discuss if there is a certain age limit required for disbursements.
- 05:10: - Both the brothers give a detailed answer on query related to the limit on number of times one can withdraw money from their 401(k).
- 07:55: - “How do I know I am invested in the right things?” answer Bill and Andy.
- 09:45: - Bill and Andy answer participant’s query related to depositing money from savings account to 401(k).
- 11:25: - The hosts answer and discuss query on the number of 401(k) plans that one can participate in simultaneously and the concerning limits.
- 13:45: - Bill asks this question from a participant that he’s still contributing to his employer’s 401(k) plan, but he’d like to roll over his existing balance to an IRA, can he do that?
- 15:34: - Andy and Bill talk about how one can change the beneficiary of 401(k) from Spouse to Children.
3 Key Points:
- There are a couple of variables that decide how much tax you will be able to withdraw and how much money you can leave in your 401(k).
- You have to remember that whatever amount you withdraw at a certain age from 401(k), you are going to pay taxes on it.
- As per rule of 55 if you are working and terminate or quit service from a company and at the same time you turn 55 or older then you could take the distribution from 401(k).
Tweetable Quotes:
- “Where can I leave money in my 401(k)?” – Andy Bush
- “The year that you are hitting 72, you’re going to have to take out a disbursement is called the required minimum distribution and that is just the minimum.” – Bill Bush
- “I am invested in XYZ fund and ABC fund, is that the right thing for me? Well what is your time horizon?” – Bill Bush
- “You can participate in multiple plans at the same time, but there are limits and those limits are that contribution rate for the year….” - Andy Bush
Resources Mentioned:
- Inside The Plan with the 401(k) Brothers -- Podcast
- Horizon Financial Group -- Website
Contact Information:
