Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Showing results for 
Search instead for 
Did you mean: 
Level 1

401 K

I am approaching 65 years of age...I have not received any of my 401-K at this questions are for saving on tax purposes:

Should I receive it in a lump sum? (To pay off my home)

Or should I receive monthly payments?

1 Reply
AnthonyC CPA
Employee Tax & Finance Expert

401 K

This is a personal choice however if you withdraw your entire 401 K in one calendar year this will put you in a higher tax bracket that year.  If you withdraw your 401 K balance over multiple years you would only pay taxes on the amount that you withdraw each year.  In order to make an informed decision you should look at your entire 401 K balance and see the amount of tax that you would pay if you withdraw it all in one year.  It may be more tax efficient to withdraw the balance over multiple years.


Hope this gives you some information when deciding on how to handle these withdrawals.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies