Share this Page URL

Chapter 20. And Now It's Time to Retire > Ready, Set, Go! - Pg. 200

And Now It's Time to Retire 200 A Handful of Choices So, when you finally retire, you have five possible options for your 401(k) plan: 1. 2. 3. 4. 5. Leave your money in the plan, if the plan allows it. Get your distribution in installments, if the plan allows it. Buy an annuity. Roll your money over into an IRA. Take your distribution in a lump sum. We've summarized the advantages and disadvantages of these options here. If you're having trou- ble making a decision, you may want to seek some professional guidance. In Chapter 22, "Getting Help," we provide guidance on choosing an advisor. Some of the choices are irreversible: You won't be able to change your mind down the road. Choose carefully and wisely. Leave It with Your Employer Advantages: · · · · You can postpone making a distribution decision until age 70½. Tax deferral is still available on the account. The income-averaging option is still available. Heirs are entitled to the remainder if you die. Disadvantages: · You may not be able to make a withdrawal at will.