401k

[David]

I've worked in the US for most of the last 30 years and I have a 401K. I put money into it, the company puts in some, and I adjust the asset mix once a year. Mostly I don't think about it.

What are the rules for withdrawing money from a 401K? Of course it's taxable. Do I have to start pulling money out at a certain age? In Canada we have to start withdrawing money from RRSP's at 71 (10 years from now)

Can I transfer the money to an IRA when I quit my job without paying tax?

And how am I going to pay for my propeller habit when I retire?

[Garth91]

David I haven't a clue about the 401K as I'm a fellow RRSP contributor.
But the propeller habit I can relate to! (On a smaller scale of course since I'm 22 years behind you) To help fund that habit you could always let a guy try some of em out, and he could let you try his to help prevent you from accidentally spending those retirement funds on ones you would not have any use for?
You happened to just get one I would have grabbed if I had have saw it first, and you're not very far away.

[Li'l Toy]

You can do a trustee to trustee transfer to an IRA or another retirement fund. IRS says that you have to start withdrawing, I think at 70 or 71 - called RMD, Required Minimum Distribution. Figured on a formula based on your life expectancy--not sure of the numbers, I suspect designed so that the fund is all withdrawn by age 90 or something like that. If you die after reaching the RMD age, whoever inherits the fund must also withdraw RMD even if they are young, but calculated on their age.

[SlingShot]

Do I have to start pulling money out at a certain age? NO, AS LONG AS YOU ARE WORKING!

Can I transfer the money to an IRA when I quit my job without paying tax? YES

And how am I going to pay for my propeller habit when I retire?[/QUOTE] SWITCH TO ALUMINUM..

[David]

I can always lifeguard when I retire to cover props. Garth, my boat is near Orillia, not so far from you.