Taking money from 401K
Posted: Mon Sep 06, 2021 10:30 pm
If you have a 401K, do you truly SAVE tax money by withdrawing it in smaller increments overall?
I keep having this sinking feeling that the economy is going to go down like earlier in the 2000's. We lost money like everyone else during that time. Now we are making money on it, and have the money in a less risky category for people at or near retirement. So, it's not all in the stock market, but some is.
Most days I want to take the money and run, and then I wonder if we would pay MORE overall taxes by doing that. Like you pay higher taxes in a higher tax bracket. It is hard to take it out when it is making money, but it's scary to leave wondering if it could collapse any time. All the "what if's" drive you crazy with the current political climate.
So, do you pay a higher tax rate to take it all at once?
Lily003
I keep having this sinking feeling that the economy is going to go down like earlier in the 2000's. We lost money like everyone else during that time. Now we are making money on it, and have the money in a less risky category for people at or near retirement. So, it's not all in the stock market, but some is.
Most days I want to take the money and run, and then I wonder if we would pay MORE overall taxes by doing that. Like you pay higher taxes in a higher tax bracket. It is hard to take it out when it is making money, but it's scary to leave wondering if it could collapse any time. All the "what if's" drive you crazy with the current political climate.
So, do you pay a higher tax rate to take it all at once?
Lily003