Slow withdrawals allow more money to stay in the plan and grow tax-deferred. Under new IRS rules, when children inherit an IRA they, too, can stretch out the withdrawals over their expected lifetimes. That avoids tax withholding. Your company or the IRA will tell you how to do it. But think carefully about your own investment skills before deciding to manage your money in a brokerage account.
Serious money is safer in diversified mutual funds.
Jane Bryant Quinn covers personal finance for The Washington Post. St. NW, Washington, D.C. 20071. She welcomes letters on money problems but cannot offer individual advice.