In this episode of Ready for Retirement, James discusses Rule 72t distributions to access retirement funds early and penalty-free.
Check out the podcast on YouTube here!
Questions Answered:
- 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?
Key Points:
- 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.
Check out the podcast on YouTube here!
Check out our main channel on YouTube here!
LET’S CONNECT!
ENJOY THE SHOW?
Don’t miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google Play
Have a question you want answered on a future episode? Submit it here
Leave a Reply