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At age 70 1/2, I will have to start withdrawing the monies from the 401K. According to the IRS tables, I have 16 years to do this using their percentages. This would bring me to age 86. If I use their percentages, but have a large rate of return on my monies, it is probable that at age 86, I will have as much money in the account as I had at age 70.
What happens to this money at age 86? Do I have to take a lump sum distribution (raising my tax bracket astronomically) or can I keep taking money out at the same rate? If I have to take a lump sum, then wouldn't it be better to take a larger amount each year, pay the taxes, and invest the rest in products that are not subject to IRS rules?
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