And this mistake can actually compound into a couple of other little mistakes that actually can cost you a lot of money. And what that might do is push you up into a higher tax bracket at that time, and on top of that, it can also affect your Medicare premiums as well, because your Medicare premiums are tied to the level of income that you make. So the more money you make, the more you pay for Medicare. One of the things that we look for, though, as a way to kind of get around this mistake is to really map out some of those cash flows. One of the things that we identified is that by taking some retirement plan withdrawals early on in retirement we can take advantage of what we call low tax years. By taking some of those retirement plan withdrawals early, you can take advantage of those low tax years and at the same time, help you get a bigger Social Security check down the road. It could also take some pressure off of some of those required minimum distributions. We can also look at doing some Roth conversions too as a way to take advantage of some of those low tax years.
Attractive money out of your plan balance won't be difficult. Simply follow these steps. To process a request online, log on to your account, decide Go to my plan account, after that then select Withdrawal. Or you be able to mail us a a completed Abandonment Request Form. And—before you request so as to withdrawal—here are some tips to advantage you avoid some common mistakes. Abide out the right amount While this may seem obvious, it's important as if you withdraw more than you need, that excess must be reported as taxable income by either you or the beneficiary. When you're connive your withdrawal amount, don't forget to: Subtract any scholarship or grant capital from the amount you're planning en route for withdraw. Map out a withdrawal arrange Think about spreading out your withdrawals. If you do so over the 4 years of college, you'll be less likely to withdraw more than your yearly qualified expenses.