Question for the Money Doctors
Question submitted on Jan 24, 2023.
QuestionI have retired and my pension and social security provide more than adequate funds for my lifestyle. I am debt free and able to travel as well as buy the things I need. I have a 401k that I will begin withdrawing from in 1-4 years. My husband says I no longer need to put away money in savings but it is a hard habit to break. Should I stop saving money?
Hello, there are a lot of variables that make it difficult to answer. However, I think if you can, defer money into a Roth 401k. By doing this, growth on that Roth 401k is 100% tax free. In addition, once you are subject to take your required minimum distribution (RMD) from your tax deferred accounts, you will not be required to take the RMD on the Roth 401k. Hope this helps!
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