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I am retired and qualified to take monies from my 401K without a penalty. What tax issues should i consider before taking that first withdrawal? I know I am not eligible to take a lump sum withdrawal as I withdrew money years ago when I needed it. What else should I consider?? Thanks Mike
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<<I am retired and qualified to take monies from my 401K without a penalty.>>

Which means that you are over age 59 1/2, eh??

<< What tax issues should i consider before taking that first withdrawal?>>

It'll all be taxed to you as ordinary income. So you'll have to plan for it as you would any other income source. Factor your income and your expenses and determine your tax issues. But there is no secret with respect to these distribution. All ordinary income. All taxed at ordinary rates.

TMF Taxes
Roy
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