Already on ArticleSlash?

Forgot your password? Sign Up

Registered Retirement Pension Plan and 401K Plan Maturity Options


Visitors: 952
 1 vote

As we mentioned in previous articles we know that our government only represents about 30% of our retirement income. The company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans. Some people choose to invest into personal registered retirement saving plans in Canada or 401k plans and IRA plans in the US. In this article, we will discuss RRSP, 401k plan maturity options.

I. Take all in Cash

a) In Canada at 69 years of age, depending on the amount of your RRSP account, you may have to pay up to 50% of tax if you take all money of the RRSP plan in cash.
b) Before April 1 of the year following the year in which you reach age 701/2 you can transfer your 401 k plan to your IRA plan with out paying tax, but minimum withdrawal is required.
c) You can cash out your 401k and IRA plans with 20% tax withhold of amount withdrawn.

II. Purchase an annuity for your 401k plan and RRSP

This option requires you to give up all control of your funds in return for receiving a fixed and regular annuity income from an insurance company. The income annuity is based upon the current interest rate and the amount of annuity investment you purchase.

III. Other options

a) In the US, your 401K can remain invested in your employer-sponsored plan, if your former employer allows it. It avoids current taxes and penalties, and may offer other advantages unavailable elsewhere but minimum withdrawal is required every year. The IRS allows a number of options under which you can calculate your MRD. Make sure that the plan allows you to select the method that is most advantageous to you.
b) For IRA plans, minimum withdrawal is required at maturity.
c) In Canada, you can invest your RRSP like other investment programs in registered retirement income funds. Minimum withdrawal is required every year.

I hope this information will help. If you need more information of insurance or series of articles of the above subject at my home page at:

All rights reserved. Any reproducing of this article must have all the links intact. “Let Take Care Your Health, Your Health Will Take Care You" Kyle J. Norton I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.


Article Source:

Rate this Article: 
401k Plan
Rated 1.0 / 5
based on 1 vote

Related Articles:

401k Retirement Plan is the Best to Ensure a Relaxed Retirement

by: Cindy Heller (July 16, 2008) 
(Investing/IRA 401k)

What You Should Know About The 401K Retirement Plan

by: Lee Dobbins (June 07, 2007) 
(Home and Family/Retirement)

The Hard Cold Facts of Your 401k Retirement Plan

by: Lee Dobbins (September 29, 2008) 
(Investing/IRA 401k)

Pay Your Dues to the IRS - 401k, Retirement Accounts, and Your Pension, Part 2

by: Richard Close (January 23, 2008) 

401K Plan Vesting Fully Vested 401K Account Balance

by: Nick Hunter (June 26, 2008) 
(Investing/IRA 401k)

Retirement Plan Withdrawals How to Safely Take the Money Out With These Five ..

by: Fern Alix Larocca (July 29, 2008) 
(Investing/Retirement Planning)

Your Magical Retirement Plan - Ensure That You Have A Retirement Plan!

by: Ernie Zelinski (December 04, 2007) 
(Home and Family/Retirement)

All about a Pension Plan

by: Sanjay Mathew (August 19, 2010) 

Do You Know which Pension Plan is Right for You?

by: Adam R. Singleton (July 09, 2009) 

401k Plan

by: Alton Hill (May 24, 2008) 
(Investing/IRA 401k)