What to do With a 401K After Retirement

by | Mar 26, 2023 | 401a | 2 comments




You have spent your entire working life growing your retirement in your 401K, what now? I am going to give you some ideas of what you can do as you reach the distribution phase.

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Rob Gill

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“EPIC Financial Strategies” is a trade name referring to EPIC Insurance Services, LLC. All references to “EPIC” contained in this video pertain to EPIC Insurance Services, LLC.
Robert Gill is not in the business of providing investment advice and specifically disclaims any liability, loss or risk incurred as a consequence, either directly or indirectly, through the use of any of the information contained in this video. Also, Robert Gill, in his appearance on various social media platforms, does NOT provide ANY legal, accounting, securities, investment or tax advice, and the opinions he shares are not intended to be a substitute for meeting with professional advisors. If legal advice or other expert assistance is required, the services of competent, licensed and certified professionals should be sought. In addition, Robert Gill does not endorse ANY specific investments, financial advisors or securities brokerage firms. Robert Gill is not a securities-licensed professional, financial planner or investment advisor.
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Many Americans contribute to a 401K retirement plan during their working years to prepare for retirement. However, some individuals are unsure what to do with their 401K after retirement. Here are some options to consider.

Option 1: Leave the 401K with the employer

If the individual is satisfied with the investment options and fees associated with their employer’s 401k plan, they can leave their account with their employer. This option allows for continued tax-deferred growth of the funds and allows for the individual to withdraw from the account when needed.

Option 2: Roll over to an IRA

Individuals can roll over their 401K balance to an Individual retirement account (IRA). This option provides greater flexibility in investment options and allows for more control over fees. Additionally, a rollover to an IRA allows for continued tax-deferred growth of the funds.

Option 3: Take periodic withdrawals

Individuals can choose to take periodic withdrawals from their 401K after retirement. These withdrawals are taxed as income and the amount taken out each year is based on the individual’s life expectancy. This option provides a regular stream of income but does not allow for continued growth of the funds.

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Option 4: Purchase an annuity

An annuity is a financial product that provides a steady stream of income in exchange for a lump sum payment. Individuals can use part or all of their 401K balance to purchase an annuity. This option provides a guaranteed stream of income for life but does not allow for continued growth of the funds.

It is important for individuals to evaluate their options and consult with a financial advisor before making a decision on what to do with their 401K after retirement. The decision should be based on the individual’s financial goals and risk tolerance. Additionally, it is important to remember that taxes and fees can impact the value of the account, so it is important to carefully consider all options before making a decision.

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2 Comments

  1. james morton

    Wait as long as possible. Buy real assets. You can not take it with you.

  2. james morton

    Miss labeled . So, he said, get advice.

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