In this episode of Ready for Retirement, James discusses Rule 72t distributions to access retirement funds early and penalty-free.
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- How can you withdraw funds from retirement accounts early?
- What’s the best strategy to execute the Rule 72t distributions?
- How does utilizing the Rule 72t impact the overall financial strategy?
- If you leave your employer in the year you turn 55, you can draw from and avoid the 10% early withdrawal penalty (still owe taxes)!
- Substantially Equal Periodic Payments: there are three different ways to calculate this and you can select which makes most sense for you.
- All withdrawals are still taxable income, you’re just avoiding the 10% early withdrawal penalty. How does this impact your overall tax strategy?
- It often makes sense to not implement the 72t distribution if you have other taxable accounts to pull income from.
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