Inside The Plan

Answering Participants' Questions

In this episode of ‘Inside the Plan with the 401(k) Brothers’, Bill Bush and Andy Bush, advisors at Horizon Financial Group answer some of the participants' questions on Financial / Tax / Retirement Planning from their recent meetings.

 

Episode Highlights:

 

  • 01:30: - Andy and Bush answer the first question which comes from a participant, “How much tax will I pay when I withdraw from my 401(k)”?
  • 03:30: - They discuss if there is a certain age limit required for disbursements.
  • 05:10: - Both the brothers give a detailed answer on query related to the limit on number of times one can withdraw money from their 401(k).
  • 07:55: - “How do I know I am invested in the right things?” answer Bill and Andy.
  • 09:45: - Bill and Andy answer participant’s query related to depositing money from savings account to 401(k).
  • 11:25: - The hosts answer and discuss query on the number of 401(k) plans that one can participate in simultaneously and the concerning limits.
  • 13:45: - Bill asks this question from a participant that he’s still contributing to his employer’s 401(k) plan, but he’d like to roll over his existing balance to an IRA, can he do that?
  • 15:34: - Andy and Bill talk about how one can change the beneficiary of 401(k) from Spouse to Children.

 

 

3 Key Points:

 

  1. There are a couple of variables that decide how much tax you will be able to withdraw and how much money you can leave in your 401(k).
  2. You have to remember that whatever amount you withdraw at a certain age from 401(k), you are going to pay taxes on it.
  3. As per rule of 55 if you are working and terminate or quit service from a company and at the same time you turn 55 or older then you could take the distribution from 401(k).

 

Tweetable Quotes:

 

  • “Where can I leave money in my 401(k)?” – Andy Bush
  • “The year that you are hitting 72, you’re going to have to take out a disbursement is called the required minimum distribution and that is just the minimum.” – Bill Bush
  • “I am invested in XYZ fund and ABC fund, is that the right thing for me? Well what is your time horizon?” – Bill Bush
  • “You can participate in multiple plans at the same time, but there are limits and those limits are that contribution rate for the year….” - Andy Bush

 

 

Resources Mentioned:

  • Inside The Plan with the 401(k) Brothers -- Podcast
  • Horizon Financial Group -- Website

 

Contact Information:

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