topic Re: 401k rollover in Retirement tax questions

401k rollover

tm0330 — Tue, 28 Jan 2020 22:34:42 GMT

I rolled my 401k into an IRA in 2019. If I contribute to the IRA for last years contributions, will I be able to withdraw monies next year without penalty. I will be 65 in a couple of months.

Re: 401k rollover

macuser_22 — Tue, 28 Jan 2020 22:41:52 GMT

Assuming you mean a Traditional IRA then since you are over age 59 1/2 there is no penalty on any distributions. You would still be subject to the normal tax on distributions.

Re: 401k rollover

tm0330 — Fri, 31 Jan 2020 13:36:02 GMT

It is a traditional.

Thank you

Re: 401k rollover

LinaJ2020 — Sat, 01 Feb 2020 22:17:06 GMT

If you are referring to an early distribution penalty, the answer would be No.

Since you are older than age 59.5, you will be not subject to 10% from early distribution penalty. However, you will still be taxed at your normal tax bracket as part of your taxable income.

@tm0330