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A Spring Cleaning for Your Retirement Strategy
Spring cleaning: you tidy up, organize, and put things in order. You can take a "spring cleaning" approach to your retirement, just as you can with your home or garage. It may be helpful, especially if retirement seems near.
This is a good time for a review of your retirement accounts. As you get older, you may want to accept less risk in those accounts, and specific business, career, or life events might mean considering adjustments to your retirement strategy. Some people have old retirement accounts from previous jobs. There might be benefits to consolidating them: less paperwork when your retirement transition happens and perhaps a more accessible summary or analysis of your financial position. If you get the sense that there is an old retirement account that could "work harder" for you, you may want to examine your choices.1
Once you reach age 72, you must begin taking required minimum distributions from retirement accounts, such as a 401(k) or traditional individual retirement account. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.