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Money Talk > Retirement Planning

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ncolello
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401k strategy  Reply with quote  

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.
Post Fri Jul 11, 2014 2:03 am
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blixet
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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. Smile

Information is more valuable sold than used – Fischer Black
Post Fri Jul 11, 2014 12:33 pm
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oldguy
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Nice try. Very Happy

However at one time that worked, it was probably in 1982 or 83 - the govt fixed that loop-hole with uncharacteristic expedience, LOL.
Post Fri Jul 11, 2014 1:37 pm
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MrNewEngland
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That never would've crossed my mind to do that. Good thinking.
Post Fri Jul 11, 2014 2:20 pm
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blixet
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Now if you had an S-Corp that would be a different story. Twisted Evil

Information is more valuable sold than used – Fischer Black
Post Fri Jul 11, 2014 5:27 pm
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ncolello
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Thanks all - I was worth asking.
Post Mon Jul 14, 2014 5:43 pm
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JonCartoon
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good idea. Need to remember that
Post Tue Jul 15, 2014 7:16 pm
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