Withdrawal Strategies for Retirement Plans

Key Takeaways

• Choose the 100% joint survivor pension benefit option unless there's a tangible health or age difference with your spouse, since all pension payout options are actuarially equal but this protects your surviving spouse from living on reduced income
• Investigate your 401(k) plan documents for mega backdoor Roth provisions, which allow contributions above the standard $26,000 limit (as of the video's timeframe) that automatically convert to Roth, creating tax-free withdrawal flexibility in retirement
• Coordinate pension income with Social Security timing by comparing which income stream has cost-of-living adjustments; delaying Social Security may be advantageous if your pension lacks COLA adjustments
• Map out your tax bracket trajectory through retirement with a CPA to avoid jumping into higher brackets at age 72 when required minimum distributions begin; consider Roth conversions during lower-income years to smooth taxes
• Read your non-qualified plan documents carefully and understand the 45-day election deadline after leaving your employer, as missing it could trigger an unwanted lump-sum distribution that complicates your withdrawal strategy