The years immediately preceding retirement, and the first couple of years of actual retirement, are a critical time for individuals. After carefully planning and diligently saving for retirement most of their lives, individuals must make some important decisions during this time.

“These decisions could have a big impact on an individual’s or couple’s retirement finances for years to come,” says David Lerner Associates Executive Vice President Martin Walcoe. Some of these decisions fall into the following areas:

1. Early IRA withdrawals and 401(k) distributions - Withdrawals from IRAs before age 59 1/2 are generally subject to a 10 percent early withdrawal penalty. However, this penalty may be avoided if substantially equal periodic payments are taken from the IRA based on life expectancy for at least five years, or until age 59 1/2, whichever is longer.