| “Take
all the cash and it’ll cost you.”
Taking a lump sum means getting everything in your
account in cash. This is the total of all your contributions;
any employer match (for which you’re "vested", meaning that you've racked up enough years of service to keep the employer match); any after-tax contribution you made; plus
any interest on any of these amounts.
Let’s face it. There’s nothing quite so alluring
as a big stash of cash. But, even if you are age 70 1/2 and must begin taking at least the minimum distribution amount, resist opting for the lump-sum. You may lose out two
ways when you take the money and run.
• Short-term
tax drain
• Long-term
opportunity loss
|
Are You Already Retired?
