401k Distribution
 

If your taxable income this year without a 401k distribution is below $80,250, you may want to consider taking a distribution this year to bring your TI up to $80,250. The withdrawal will be taxed at the 12% rate level. It's unlikely you will be able to withdraw at that low rate in the foreseeable future. Rolling it into a Roth would seem to be a wise move.

Agree with this approach (with caveat that we don’t know all the particulars of your situation, and suggest that a CFM can better help you sort this out). If you believe that capital gains taxes are going to increase in coming years, roll the 401k over into a Roth this upcoming tax season, pay the lower tax rate on the gains, then enjoy tax-free withdrawals at RMD (or earlier).

From the question asked, I would recommend a CFP
 

As a long time corporate finance manager, your question indicates that you would probably benefit from a Certified Financial Planner, CFP. That way, the CFP could explain the investment risks and strategies, tax implications, and how a trust(s) would help your entire estate.

An employer sponsored 401(k) has limited options, and moving to a self directed IRA will provide more investment options, able to be tailored to your risk profile, which is the reason why posters recommend you change custodians or financial service companies.

However, without understanding the size of your estate and investments, there are tax favorable strategies for taking larger distributions than the minimum at different times. If you don't need the money, then leaving a distribution in a taxable account with proper investment strategy is a future step

But get some professional tax and investment help

Hire a financial advisor. I wouldnt take advice from random people

Ditto
 

Did the same in 2014. Moved 401K into IRA. Had a financial advisor. Never looked back. IRA opens up everything to you. 401K locks you into what your company's group selected for you to invest into.

401K advice
 

Be careful with the advice of everyone here on converting your 401K. That is not always the best advice depending on your specific options for investment with who your past company has managing as well as the fees. Example, i converted my 401K to an IRA and have an outside management company managing it. We left my wife's with Fidelity who was the management company of her 401k from work. There are many investment options including targeted funds like the 2020 vangard fund mentioned. The fees are a flat $6.00 per quarter. There are no advisors that are going to charge you so low, example i pay .75% and most of the companies i interviewed charged 1% to 1.5% depending on the size of your 401k. So my IRA now had to make almost .74% more that her 401k before they are even.
The other side of this is what is included for the management fee they charge. My IRA is with Personal Capital and they provide other services that were important to me like current/long term spending planning, prior tax year review as well as current planning, estate planning, etc. Think about what types of services you want to include for what you are going to pay. Interview at least 3 or 4 and not only ones here in The Villages. There are good advisors that do more over Zoom and occasional onsite meetings and that is why I went with Personal Capital. Been over a year and they seem to be doing more than what I expected.

we have good luck with Fidelity, & use managed accounts. this can earn xtra $$, but whatever you earn is considered income by the IRS. is something to keep in mind, but sometimes that $$ can make all the difference in keeping up with unexpected expenses.

I have a 401K in the same status; I agree with the response issued in the above post.

Get a Financial Advisor
 

If you are asking here it would seem that you need a qualified financial advisor. This group will perform heart surgery if you ask about it! You might want to ask about recommendations for a FA and you should get a sufficient number of good suggestions to start your interviewing process.

FA's are worth their weight in gold as they can suggest the appropriate way to grow the money, protect from taxes, and consider heirs in the planning based on your personal situation.

that was why i mentioned Fidelity. their advisors can answer all kinds of questions we can't here. it would be wise for OP to do constructive investigating before making any financial decisions.

401k
 

excellent answer. we did that and then when we moved here we went to A financial planner and put everything in an annuity, sorry we did.

Enlist the aid of a financial advisor who charges you a straight fee for review of your portfolio and options and does not receive any commission from any investment scenarios he/she might suggest. Asking in this site for financial advice is well.......

This may the worst place that you should seek advice about your financial well-being.

I’d suggest opening an account with a full-service broker/financial advisor. If you go to the website of the firm and office where you’d like your account, most will list all of their advisors showing their experience and professional qualifications. Pick one, call and make an appointment. Then decide if you’d be comfortable with the advice that person will provide. Of course, you can also rely on the referrals of advisors from close friends, whose advice you might feel comfortable with.

Just make sure all transfers are completed in 30 days or less to avoid taxes. Good luck.

When I need my shoes fixed - I go to a shoemaker - when I want financial advice I do not go to totv