Can I withdraw all of my Solo 401(k) savings as a lump sum?

I have a very good pension plan through my employer. If I start a Solo 401(k) account on the side, could I withdraw the money as a lump sum when I retire? I will be able to live off my pension plan, so this would be a secondary source of money in retirement. What are the advantages and disadvantages of withdrawing all of my Solo 401(k) savings as a lump sum?  

Financial Planning, Retirement, Pensions, 401(k)
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July 2017

It would all be taxable at once.  A better alternative would be to an IRA Rollover directly into an IRA.  Then you could take distributions whenever you needed them & only those amounts would be taxable.  This way you could control your taxes spreading them out rather than taking one big hit.  Also, while they are in a retirement plan or an IRA they are asset protected from creditors.

Hope this helps and best of luck, Dan Stewart CFA®

July 2017
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