FAQs on 401(k)s
Nicholas J. Colantuono, CFP® answers FAQs on 401(k)s on WCVB Channel 5 in Boston.
Beneficiary to a 401(k)
When inheriting a 401(k) account, there are a few things to know before you start taking out money.
You can begin to withdraw penalty-free if you are over the age of 59 1/2. This money will be counted as part of your income the year you take it.
If you withdraw large amounts of money from this account to buy something like a home, it could affect you from a tax standpoint.
Rolling Over Your 401(k) To a Roth IRA
Some 401(k)s offer a Roth option within the plan; you can make decisions on where your contributions are going, whether it’s the pre-tax bucket or the Roth bucket.
It’s important to know how the money in your plan is currently structured; is it pre-tax? If so, and you move it over to a Roth, you will be paying taxes on all of it.
When speaking to a financial advisor, they will need to know how old you are before recommending that you move out of that plan altogether and into a Roth.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
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