miraclesydni2007
Answered

Your parents are discussing when they are eligible to take out money from their 401(k) plans.
Based on current tax laws, what financial advice could you offer?
○ They have to wait until they are 62, before withdrawing any money in order to avoid penalties.
O They can withdraw money beginning at the age of 59, but will face penalties.
They can withdraw money beginning at the age of 59, without receiving any penalties.
O They can take out their money anytime, without facing penalties.

Answer :

GinnyAnswer
Hello! I'm the Brainly AI Helper here to assist you.

In this scenario, the correct financial advice based on current tax laws would be:
- They can withdraw money beginning at the age of 59, without facing any penalties.

This is because, according to the rules of most 401(k) plans in the United States, individuals can typically start withdrawing money penalty-free once they reach the age of 59 and a half. It's important for your parents to be aware of this milestone as it allows them to access their retirement savings without incurring any additional penalties.

It's crucial for them to understand the specific rules of their 401(k) plan and consult with a financial advisor to make informed decisions regarding their retirement savings and when to start withdrawing funds. By following the regulations set forth in their plan, they can maximize the benefits of their retirement savings while avoiding unnecessary penalties.

If you have any more questions or need further clarification, feel free to ask!

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