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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

Yes you could pull out your Solo 401k in a lump sum when you retire.  The question would be why would you want to to do this?  If you pull the money all at once it is safe to assume you will pay more taxes than if you pulled it out over time as needed.

 

To start a solo 401k you will  need selp employed income.  If this is you read this post:

 

How to slash your tax bill with a Solo 401(K)

 

Live for Today, Plan for Tomorrow.

 

DAVID RAE, CFP®, AIF® is a Los Angeles-based financial planner with DRM Wealth Management, a regular contributor to Advocate Magazine, Huffington Post, Investopedia not to mention numerous TV appearances.  He helps smart business owners across the USA get on track for their financial goals.  For more information visit his website at www.davidraefp.com or the Fiduciary Financial Planner LA blog.

July 2017
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