Kristen C. asked
I am considering withdrawing $10,000 from my 401k to build an emergency fund, either by investing in a Roth IRA or a money market fund. I want to understand the tax implications and ensure this won't push me into a higher tax bracket of 22%. I am 63, married filing jointly, with no dependents, and my wife and I made $110,000 and $40,000 respectively this year. I will receive a pension, social security, and have $222,000 in my 401k. What are the best strategies for managing this withdrawal and its tax implications?
June 19th, 2023
Robyn G. answered
Taking a distribution from your 401k to build an emergency fund is generally unnecessary, as your 40...
June 19th, 2023
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