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72(t) SEPP and 401(k) contribution AT THE SAME TIME?
Old 08-18-2007, 11:24 AM   #1
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72(t) SEPP and 401(k) contribution AT THE SAME TIME?

Situation:
Single, female, 44, currently UNemployed by choice. 300K in 401(k).

Plan:
1) Roll 401(k) into Vanguard or Fidelity IRA. Start 72(t) withdrawal, single life, fixed amortization, ~18K/year at today's rate. Continue withdrawal until 59.5.
2) Go back to work a year or two from now. Participate in employer's 401(k) program.

Question:
Can it be done? Is it legal?

Thanks
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Old 08-18-2007, 01:19 PM   #2
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Sure she can, but why? And as you know, she has to continue her withdrawals until she is 59.5.

72(t) Calculator - Financial Calculators from Dinkytown.net
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Old 08-18-2007, 05:14 PM   #3
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Thanks Martha.

She wants to take a long break from work to travel, and possibly to get an advanced degree. Her non-tax deferred saving alone (~40K) is not enough for 2 to 4 years of expenses.
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