08-31-2023, 08:45 PM
(07-17-2023, 02:20 PM)ken-do-nim Wrote: I just learned about the "rule of 55", and my entire 401k is with my current employer, since I have been there for 27 years. Coincidentally, at age 55, child support ends for sure.
*If* the next 5 years are extremely lucrative - and that's a big if - then it gives me an interesting option.
Ages 50-55: Accumulate!
Age 55: Retire!
Age 55-59.5: Draw down pre-tax 401k to live on while continuing to accumulate in the taxable and ROTH IRA accounts
Age 59.5: Roll ROTH 401k into ROTH IRA. Move this combined ROTH IRA into high dividend payers. Move remaining 401k into standard IRA. Taxable should be 100% DGI at this point as well. Draw dividends from all 3 sources to live on as needed, reinvest the rest.
Mostly a thought exercise at this point, but it's good to have options!
Yea, a lot of people don't know about the "Rule of 55" concerning kplans--I'll only do it if forced into it--if not I won't do it--because for us we have to "leave" the funds in plcae--I'm not crazy about our company's kplan choices--they just got rid of my best (by far) performing fund--great thanks a lot--drives me NUTS