Page 9 - 2018 How to Retire from Florida

Question #6:

How much can I take out

of retirement accounts $64,000
6

This is the “$64,000 Question”…and if
you remember that TV show from 1955, you What should I do with my sick leave?
are ready for retirement. Should I take the money out of
the account?

That is why it is so important to have a We recommend withdrawing or using your
Retirement Income and Expense Plan. sick leave accumulation to pay down your
You will need to determine how much credit card or any other high-interest debts.
income you want to take in addition to your If you do not have debt and would like
monthly FRS Pension and Social Security defer taxes on your sick leave money, then
payments. If you are in the FRS Investment you can rollover the money into an IRA or
Account, it is even more crucial to have a into a 403(b) or 457(b) plan.
plan and review it quarterly. A DROP Advisory Council member can
provide you with professional input and
How much should you withdrawal periodic monitoring. He or she will conduct
annually from your 403(b), 457(b), reviews to make sure you are on track
401(a), IRA and Roth IRA accounts? throughout your retirement years. The
advisor can help provide you with lifetime
It depends. If you want these accounts to income or a legacy for your heirs.
last as long as possible, you may want to
withdraw the interest earned every year. The
other alternative is to have a systematic
approach to spending down these assets.

When taking income in retirement, you need
to be careful on the tax implications of each
withdrawal. It is important to review the
current tax tables and talk with your CPA
before you take a large withdrawal to pay for
a new kitchen or to pay off a mortgage.