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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (19774)	5/1/2008 9:38:22 AM
From: Wharf Rat	Read Replies (2) \| Respond to of 149317

"(I will be younger than 67 when I retire, so I can't pull out of my 401K and IRA)." You can start withdrawing from retirement accts, penalty free, at 59 1/2.

To: RetiredNow who wrote (19774)	5/1/2008 9:58:41 AM
From: Bread Upon The Water	Read Replies (3) \| Respond to of 149317

Actually,I think, your withdrawal from the 401(k) plan will be taxed partially at your ordinary income rate as those contributions have never been taxed at all. For instance, if the 401(k) plan contained $100,000 and 50,000 of it was contributions then, I think, half of your withdrawal is taxed as ordinary income. (The IRS may have a first in first out rule meaning: As you withdraw funds the first monies are all considered ordinary income until you reach your contribution amount and then monies withdrawn after that are taxed at the long term capital gain rate.) I am speculating in part here because I don't know for sure. Anyone else who does know please chime in because I'd like to nail this done myself. thanks in advance.