Some retirees want to delay taking withdrawals as long as possible. Mainly to help their savings compound without the negative effect of taxes. Generally it makes sense to delay taxes.
Beginning the year you turn 70 1/2 you must begin taking minimum distributions. The amount is related to your life expectancy. Your plan administrator can provide you with the IRS table. To get a rough estimate of your required distribution divide 1 by the number of years of your life expectancy. Then multiply that by the value of the assets in the 401k plan.
Once you retire, most financial advisors will recommend that you take your money out of the 401k plan. Either as a one time distribution or as a rollover into an IRA account. The reason is to avoid plan fees and to give you greater flexibility in investing your funds.
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