Q.: At retirement, is it a good idea to take a Final Withdrawal (FW) from the retirement system? F. G.
A.: Yes, it is. In order to receive the maximum FW, your retirement account must have no outstanding loans. Your FW is limited to 75 percent of your retirement savings account (90 percent for cops and firefighters). First and foremost, the FW should be used to pay-off all outstanding debts, insofar as you should be debt-free at retirement (excluding the mortgage on your primary residence). When used in this fashion, the FW is taxable income in the year of the FW.
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