Retiring in three years at 59 1/2 and the website says I’m in good shape. Main issue is most of our money is 401k and real estate. Not much cash. Any suggestions how to avoid some of the taxes I’m going to get hit with when withdrawing from 401k?
That’s a good one, retiring in three years and little cash wanting to avoid taxes on a 401k . I wonder if “getting hit” with taxes is part of the retirement plan?
I’m thinking there are a few million others who would like to do the same thing. The reality is you pay taxes going in or coming out. If your gains are outside a 401k or IRA, your tax rate may be lower than ordinary income.
Hint: Don’t accumulate assets only in qualified plans like a 401k or illiquid assets like real estate. You need cash and investments outside plans. Mix it up, stay flexible, be able to turn reinvestment of dividends and interest on and off as needed.
QUINNSCOMMENTARY 
Taxes are one of my expense categories, their $ out of my pocket. And they are part of my 25 times retirement expenses calculation before I retired. From reading a number of people posts here and elsewhere it seems many don’t consider taxes as an expense.
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I will probably receive a few objectionable responses to my saying this; but here it is.
Most Humble Dollar readers are probably a lot wealthier going into retirement than the average Joes and Janes. Why so much emphasis on trying to avoid or minimize paying taxes?
Taxes do help support the less fortunate.
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That’s not from HumbleDollar though, but you have a point especially regarding IRMAA
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If circumstances warrant, a rollover to Roth would be one idea. That’s if the money will stay in the Roth long enough to justify the taxes now. A tax “hit” won’t be any worse after retirement than before. After social security kicks in, there is the 15% of it not taxed and a lot of states exempt social security from state income tax. Some go further and exempt portions of pension income. So the poster need not worry.
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