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Ask Fidelity

We know saving for retirement is a top priority for many investors. No matter where you are in the planning process, you may have questions. We can help. Check out the questions we've already answered, or if you're a Fidelity customer, submit your own. We'll post replies to selected questions on a weekly basis.

Ken and Sarah answer your questions

ask-fidelity-retirement-team

For more than 60 years, through all kinds of market conditions, Fidelity has been helping people like you pursue their financial goals. Ken Hevert and Sarah Walsh, who lead our Ask Fidelity team, have spent decades helping investors understand retirement strategies. They can help put Fidelity’s expertise to work for you.

Learn more about Ken and Sarah.

(589 Questions : 588 Answers)

Q&A for Answers to Customer Retirement Questions Category

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Answers to Customer Retirement Questions

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Withdrawals and Required Distributions (MRD)
 
1 answer

where do I find the RMD on my IRA?

Age: 65 or over
1 week, 2 days ago
by
 - Highlands Ranch, CO, USA
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A: 
Thank you for your question on the minimum required distribution (MRD or RMD) for your IRA.

You can access the MRD estimate for your account by logging on to Fidelity.com and going to the Retirement Distribution Center at Fidelity.com/RDC.

On that page you will see the estimated MRD for your account, and if you select “2015 Retirement Account Details” in the center section, additional information will be presented and you can see how that MRD was calculated. As long as all the details are accurate, then your estimate is correct.

If you decide you want the convenience of automating distributions of your MRD from your IRA each year, please consider enrolling in automatic withdrawals for the account. The link to enroll is also available on the Retirement Distribution Center.

Hope this helps.

Ken
6 days ago
0
0
Q: 
I still work and have a income over 200,000 and we are married and file jointly. He is not working, gets ss, .But would like to withdrawal $50,00 what are taxes we would have to pay, can it be used to buy a second home??
Age: 55 to 64
3 weeks, 2 days ago
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A: 
Thanks for your questions, Theresa. Since your husband is over 59½ and is no longer working for the employer who sponsored his 401(k) plan, he is free to withdraw the money from the plan for whatever purpose he chooses. Although he is past the age that would trigger an early withdrawal penalty, keep in mind that he is still responsible for income tax on the amount of pre-tax contributions withdrawn from the plan. When withdrawing from a workplace retirement plan, the plan will generally withhold 20% for taxes. You may be able to have more withheld, but the minimum is 20%.

When considering a large withdrawal from a 401(k), remember that the amount withdrawn will be added to your income for the calendar year and, depending on your current tax situation, could move you into a higher tax bracket, triggering a larger tax bill than you may have anticipated.

We always suggest that you consult with a tax advisor prior to initiating a withdrawal to make sure you’re aware of what the tax impact will be.

Sarah
1 week, 6 days ago
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Age: 55 to 64
3 weeks, 5 days ago
by
 - Illinois, USA
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A: 
Thanks for the great question. Your Social Security benefit is based on your work record and depends on how much you’ve earned over the span of your working life. Income from 401(k) withdrawals does not count as earned income and will not impact your Social Security benefit.

What will have the greatest impact on your Social Security benefit is the age at which you start to receive your payment. The earlier you start to receive your benefit, the lower the monthly payments will be. It’s important to take this into consideration when deciding when to start taking Social Security. For more information, read this Fidelity Viewpoints® article “Should you take Social Security at 62?”: https://www.fidelity.com/viewpoints.... For more help, please call your plan’s toll-free service center phone line and speak with a representative who can provide guidance based on your needs and objectives. If you’re considering a withdrawal from your plan, consult with a tax advisor to make sure you are aware of the tax implications.

Thanks and good luck.

Sarah
1 week, 6 days ago
0
0
Age: 35 to 44
3 weeks, 6 days ago
by
 - c/s surgery saftey harbor florida
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A: 
Thank you for your question regarding whether you are getting the most out of your employer contributions based on the money you are contributing to your 401(k).

Each employer sets up their own rules regarding company contributions and matching contributions, and these rules will vary between employers and plans. Some will only match certain sources of money (pre-tax, Roth, or after-tax), while some plans will not match contributions at all.

We were able to access your specific plan rules, and determine that both pre-tax and Roth are matched. This means that if you are putting 4% pre-tax and 4% Roth, and the company matches $0.50 on the dollar of the first 6% that you put into the account, you are putting in enough to get the most out of that company match.

If you would like to learn more about your specific plan details, and receive assistance on retirement planning, you can call 800-835-5097 Monday through Friday, 8:30 a.m. until midnight Eastern Time, or call your plan’s designated toll-free number during their business hours.

Thank you for taking the time to message us. I hope this helps.

Sarah
5 days ago
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0
401(k) and 403(b)
 
1 answer

Lump sum after tax 403(b) contribution

by
 - Trumbull, CT, USA
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Q: 
I am over 70-1/2, taking MRDs, but still working and contributing to a pre-tax 403(b).
Can I make an after-tax lump sum cash contribution to the 403(b) to make up the maximum annual contribution (including 15 year, and catch up amounts), or can I only contribute through salary withholding?
Age: 65 or over
3 weeks, 6 days ago
by
 - Trumbull, CT, USA
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A: 
Thanks for the question. Unfortunately, there are only two ways to add money to a 403(b): through payroll contributions and through a rollover from a previous 403(b) plan account. You cannot meet your maximum annual limit through a lump sum contribution.

The first thing I’d like to ask you is whether you’re taking minimum required distributions (MRDs) from the 403(b) with your current employer? If you are still working for that employer you do not need to start taking MRDs from that account until April 1 of the calendar year after the year in which you retire. If you have a 403(b) with a previous employer, you would need to start taking MRDs from that account the year you turn 70½ even if you are still working for another employer.

If you are looking for a way to save more money for retirement with after-tax dollars, you may want to consider an IRA. An IRA may offer a wider variety of investment options and depending on your situation you may be able to take advantage of a Roth IRA with its tax-free withdrawals (for qualified withdrawals only).

Fidelity offers several options for after-tax retirement savings. Go here to learn more about IRAs: https://www.fidelity.com/retirement.... Besides an IRA, a deferred annuity can provide tax-deferred growth in retirement. You can learn more about annuities here: https://www.fidelity.com/annuities/....

With the number of options available to you, it might be helpful to speak with a Fidelity retirement representative by calling 800-345-1388. The representative can work with you to build a plan that makes sense for your specific needs and goals, including developing a retirement income plan to make sure your assets are invested properly and that you’re income needs will be met as long as needed.

Good luck.

Sarah
1 week, 6 days ago
0
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