If you need additional recurring income, you should ask yourself if you need that income for a fixed period of time or for the rest of your life. The NC 401(k)/NC 457 Plan transfer is designed to provide income for the rest of your life. If you need income for a fixed period, a systematic withdrawal from your NC 401(k)/NC 457 Plan may be a better alternative.
The NC 401(k) and NC 457 plans offer systematic withdrawals, so you can establish recurring income planned to last for a fixed period. Contact the plan administrator for more information on this option. The money remains in your NC 401(k) or NC 457 account and remains invested as you specify. You can change or cancel the systematic withdrawal at any time and if you die before withdrawing your full balance, the remainder will go to your designated heirs.
Suppose you are age 65 and you need additional income to cover your basic living expenses. You read that the average 65-year-old will live about 20 more years. You decide to set up systematic withdrawals from your NC 401(k) account, which has a balance of $200,000. Your advisor calculates that you can withdraw $16,000 per year and if you earn a 5% investment return, your money will last roughly 20 years.
This page was last modified on 11/14/2024