I'm 65, How do I start withdrawing my IRA funds. Do I have to be retired.

How much would I have to pay in taxes at age sixty five if I cash out my 401k ?

Quote:

---

Originally Posted by jaygreenfield

I'm 65, How do I start withdrawing my IRA funds. Do i have to be retired.

---

You can withdraw as much (or as little) of your IRA funds as you like. You do not have to be retired. The only catch is that if this is a Roth IRA it must be at least 5 years old to enjoy distributions tax-free. If you call the IRA administrator (the company where you have the IRA accoun) they can set up a one-time withdrawal for you, or if you prefer a regularly scheduled distribution (monthly, or quarterly, or whatever you want).

Quote:

---

Originally Posted by jaygreenfield

How much would I have to pay in taxes at age sixty five if I cash out my 401k ?

---

The amount of the IRA or 401(k) distribution is considered to be ordinary income (unless it's a Roth plan), and so the taxes owed depends on your tax bracket. Of course the more you take out the higher your income becomes, so you may be pushed into a higher tax bracket than you are used to. You asked whether you need to be retired in your previous question - rules vary with plans, but to cash out a 401(k) most plans require that you are no longer an active employee. Check with the 401(k) plan administrator to see what the rules are for your particular plan.