ncolello
New Member
Cash: $ 2.05
Posts: 9
Joined: 22 Aug 2013
Location: Hudson Valley
|
| 401k strategy |
 |
|
I am over 60, still working and contributing to a 401k. Can I take scheduled withdrawals while still contributing? I was considering the tax advantage of not having to pay SS & Medicare if I up my contributions and withdraw money.
|
Fri Jul 11, 2014 2:03 am |
|
|
blixet
Preferred Member
Cash: $ 32.55
Posts: 156
Joined: 28 Apr 2013
Location: Southern California
|
Whether or not you are allowed to withdraw from your 401k depends on the plan rules. See the Summary Plan Description for that information. As to avoiding Social Security and Medicare taxes on your income, it will not work. Those taxes are applied to your gross wages before any reduction for contributions to retirement plans. Look at boxes 1, 3, and 5 on your last W-2 form and you will see. Nice try. 
Information is more valuable sold than used – Fischer Black
|
|
Fri Jul 11, 2014 12:33 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
Nice try. 
However at one time that worked, it was probably in 1982 or 83 - the govt fixed that loop-hole with uncharacteristic expedience, LOL.
|
|
Fri Jul 11, 2014 1:37 pm |
|
|
MrNewEngland
Full Member
Cash: $ 20.85
Posts: 98
Joined: 04 Nov 2009
Location: The QC
|
That never would've crossed my mind to do that. Good thinking.
|
|
Fri Jul 11, 2014 2:20 pm |
|
|
blixet
Preferred Member
Cash: $ 32.55
Posts: 156
Joined: 28 Apr 2013
Location: Southern California
|
Now if you had an S-Corp that would be a different story. 
Information is more valuable sold than used – Fischer Black
|
|
Fri Jul 11, 2014 5:27 pm |
|
|
ncolello
New Member
Cash: $ 2.05
Posts: 9
Joined: 22 Aug 2013
Location: Hudson Valley
|
Thanks all - I was worth asking.
|
|
Mon Jul 14, 2014 5:43 pm |
|
|
JonCartoon
Preferred Member
Cash: $ 27.35
Posts: 135
Joined: 18 Jun 2014
|
good idea. Need to remember that
|
|
Tue Jul 15, 2014 7:16 pm |
|
|
|
