How to Withdraw Money in Retirement

If you're ready to use the money you've been saving for retirement

, you'll have a host of options for income if you've been paying taxes. You can get money from Medicare and Social Security, at the very least. However, funds from these venues won't likely be enough for you to live on. You can enjoy a more comfortable and stable retirement if you have more money coming from other sources that can help you afford possible expenses like those associated with special healthcare or nursing care, should you need it at any point in your retirement.

The depletion of your nest egg is a real danger, especially when you consider today's economic conditions, making the withdrawal of money from your retirement funds a decision that needs much consideration. Here are some retirement plans and programs, and basic guidelines on how to obtain the most funds from each source:

With Social Security, full retirement age varies. For retirees born after 1960, the age is 67, while partial retirement age is at 62. If you've paid for Social Security and reached a certain age to qualify, your contributions will make you eligible to receive your expected payout no matter what financial status you're under.

Medicare eligibility is at 65, with a number of exceptions for younger retirees. With healthcare costs being one of the major concerns for retirees, Medicare plans are one of the best ways to augment your retirement finances. Your plan will dictate how much you can get, and when.

401K planholders can start withdrawing funds at 59 years of age without threat of the 10% penalty the IRS places on the beneficiary. These retirement-specific compensation plans are regulated by the IRS for rollovers and the release of lump-sum payouts.

IRA plans won't come with the 10% penalty if you start withdrawing at 59 as well. You can contribute to your plan up to the age of 70 . IRA plans can benefit the senior as he or she can receive money over time using straightforward withdrawal methods.

Building your retirement nest egg is already a difficult process, so you should do as much as you can to withdraw funds incrementally from various sources to guard against the depletion of your funds. Aside from Medicare and Social Security, 401K and IRA plans can help you augment your income sources and make your nest egg last. Contact your tax advisor or financial planner so you can make the most out of your plan payouts.

How to Withdraw Money in Retirement

By: Carina Smith

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