@ZEBRA53 wrote:
Thanks for your response macuser-22. The reason I am asking is because I am about to get my mandatory Distribution, after 10 years, of my Retirement 401K roll over which is in annuity with guaranteed lifetime income. The financial guy is saying that I should re-invest it while I am still working because if I cash out the Distribution, my tax will be high, approx. 30%, which he will have to withhold. My current tax rate is 15-17% based on AGI, so I want to tell him to withhold only 15-17% not 30%., Thanks.
Your question is not clear.
You say 401(k) rollover and that implies that was rolled into a Traditional IRA. But if you are still working and the money is actual in a 401(k) then your first RMD can be delayed until April 1, of the year after you retire from employment.
I don't know what you mean by "after 10 years" but if you have reached the age of 72 and must take an RMD from a IRA then you are prohibited by law from rolling that into any other tax deferred account. You most pay the tax on the income. If your "financial guy" is suggesting otherwise then he know nothing about tax and RMD law. The 401(k) rules do not apply to an IRA even if still working.
You can use TurboTax TaxCaster to calculate about what the tax will be
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
