The amount in your 401(k), which you’ve dutifully contributed to throughout your working life, probably looks like a nice nest egg.
It’s important to consider the impact of taxes on that balance before you are ready to start withdrawing those funds. In addition to the taxes you’ll pay on the withdrawal, it’s important to realize that it may trigger other taxes as well. How will it affect your annual taxable income? Will it raise your income high enough that your Medicare monthly premiums will increase?
To learn more about how to best manage a withdrawal from your 401(k), read the full article on Fool.com
