What should I know before making pension withdrawals?

Answer by  shafeeq (7)

First, determine how much of your withdrawal is taxable. Ask if you have any waiting period associated with withdrawal. Then ask how much you can withdraw without penalties. Ask if you have a minimum required withdrawal amount. Determine your withdrawal options and select appropriates tax withholding. Pension withdrawals before the retirement age may mean lower pay out over your lifetime.

Answer by  DavidS (1517)

The main item is are there any penalties? Are you withdrawing early if so then more than likely there are penalties. Also take into account any tax liabilities.

Answer by  Aseda (58)

First find out how much you are entitled to, then ask the company handling your pension if you are exempt from any kind of tax, then see if you should be paying anything on your pension. make sure you know everything there is to know about withdrawing you pension money.

Answer by  MILLENNIUM (89)

The most important factors are financial planning for retirement and tax implications. It is critical because of the complexity of the law that you consult with a competent tax advisor.

Answer by  Chaneygirl (1755)

Are you over 59 1/2? If not there may be a 10% penalty in addition to the tax. Money coming out of the pension will be taxable to both federal and state. Do you have adequate retirement funding from other sources if you take this money?

Answer by  nphatak (11)

You should be aware of the tax-efficiency of the withdrawals you plan to make. In addition, you should consider your full consumption plan into the future. Finally, you should consider your set of investment opportunities.

Answer by  Att4372 (1704)

First, determine how much of your withdrawal is taxable. Ask if you have any waiting period associated with a withdrawal. Then ask how much you can withdraw without penalties. Ask if you have a minimum required withdrawal amount. Determine your withdrawal options and select appropriate tax witholding.

Answer by  tamarawilhite (17883)

Pension withdrawals before the retirement age may mean a lower pay out over your lifetime. Depending on your state, you may have to pay income tax on the pension payments.

Answer by  Matthewbrown26 (22)

First you need to your taxable amount and moreover you need to look at your financial position & requirements for more