Getting Money OUT of Your Strategic Affluence 401k This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Let’s start by looking at the typical distribution and withdrawal rules that govern your Strategic Affluence 401k… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules First of all, if you are over 59.5 years old, you can withdraw as much as you want penalty free, but you will of course have to pay the income tax (unless you were using the Roth partition for your assets). This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules In fact, any withdrawal, regardless of age, requires you to pay ordinary income tax on it, unless it was designated as a Roth contribution. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules But if you are under 59.5 years old, you will have to pay a 10% penalty for an early withdrawal on top of the income tax. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules More than likely, you would be better off borrowing from your Strategic Affluence 401k than taking an early withdrawal in order to avoid paying the penalties. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules Your Strategic Affluence 401k has the special capability that allows you to borrow from the account, and we will cover that in a separate training… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules A special benefit to the Strategic Affluence 401k is that the default Retirement Age has been set at 55 years old… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Withdrawal Rules … which means if you “leave service” at 55 years old, you can gain access to your money without penalty before age 59.5! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Now there are a few exceptions to these rules that would make you exempt from the 10% penalty for early withdrawals. If you qualify for any of the following “hardship withdrawals” you are exempt: This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Exemptions From Early Withdrawal Penalties 1. You die and the withdrawal is to your heir 2. You terminate employment AND are 55 or older 3. You have a medical expense, and you take out less than the maximum allowable amount for a medical expense deduction 4. You become disabled 5. There is a valid “domestic relations order” for the withdrawal (such as divorce) 6. You are on a ‘substantially equal periodic payment’ plan, known as a 72(t) distribution (which we’ll cover in a separate training) This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Required Minimum Distributions (RMDs) Always remember that once you reach age 70.5, there are Required Minimum Distributions (RMDs) you must take that are based off of your life expectancy. You can calculate your minimum using an RMD calculator or your financial advisor can figure this out for you. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Required Minimum Distributions (RMDs) WARNING: If you do not withdraw your Required Minimum Distribution, you will have to pay a 50% penalty on the difference between what you took out (if any) and whatever the required minimum is. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Required Minimum Distributions (RMDs) So needless to say, be sure to stay on top of your RMDs… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Roth Contribution Differences If you have made contributions to the Roth side of your Strategic Affluence 401k, there are a few differences in the withdrawal rules for this partition of your account… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Roth Contribution Differences Since the Roth portion of your Strategic Affluence 401k is funded by after-tax dollars (if you choose to contribute this way), you can withdraw your Roth contributions to the account without facing any penalty or taxes. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Roth Contribution Differences However, withdrawals beyond your contribution cannot be taken until you reach the age of 59½ AND you have had the account for 5 years (except under special circumstances). Withdrawals (beyond contribution) before 59½ are subject to the 10% penalty and income taxes. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Roth Contribution Differences Again, these special rules are for the Roth contributions ONLY, so be sure to understand the differences. Your tax advisor can help you with these rules. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Roth Contribution Differences Also understand that, the RMD rules apply to any funds in the Roth partition of your Strategic Affluence 401k as well. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Summary In short, there are 3 general circumstances under which money can be withdrawn from your Strategic Affluence 401k: This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at

Summary 1.Withdrawals after age 59 ½ (during retirement) 2.Borrowing from your own account (repayment required) 3.Hardship circumstances This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at