I was checking on my investments the day before yesterday and happened to go to the website where my 401k is. Usually when I look through the site, the first thing I see is (obviously) how much is there, as well as how much I could get a loan from if I wished. The section where I could take a distribution from was always greyed out, as I wasn’t yet to the age where that was possible. However this time, that wasn’t the case. The distribution amount was active, and it said I could ostensibly withdraw the full amount of my account if I wished.
Obviously I don’t wish that, as I’m not yet retired, but seeing that did make me feel somewhat better. I’ve now attained the proper age to change my finances if I wished (without penalty) but since it is a 401k, it’s tax deferred money, so anything removed from it not being a loan would have to be taxed. So, unless I was going to move the money to another account (a Roth IRA or something similar, even another 401k) I’d have to pay a considerable amount of tax on that withdrawal. Better to leave it where it is, where the various investment strategies that have been set up make good use of the total amount, and build it even more for when I do eventually shuck off the need to go to work every day.
After doing a little digging on the SSA website, I discovered waiting the 5 years would garner me an extra $600 per month, so that might not be a bad idea. I do have a pension through my current employer, as well as that money in the 401k, in addition to personal savings that might actually allow me to forgo collecting early and leaving cash on the table. We do have a financial advisor, so more than likely in the coming years I’m going to be picking his brain and see what all can be done to make my retirement that much more comfortable.
At any rate, it’s good to know I’m not destitute. I’m not rich either, but honestly who is anymore? With the cost of living going up and up, wages staying stagnant and the uncertainty in government, it’s a wonder anyone has anything to rub together anymore. Just some musings that I wanted to write down, and share. Have a good day y’all.