72t - whats the percent that can be taken out?

retiringat50 · 01-03-2008, 05:59 AM

I understand with 72t one would need to either take the same amount of money out every year for 5 yrs or until one reaches 59.5 (whatever is longest). Just read that there is a % from last years retirement fund that can be taken.

What is that %?

and id still be able to dip in if I find its not enough, right

smileydog · 01-03-2008, 08:57 AM

The % is determined from 120% of the federal mid term rate ( no more than ).
See link Fidelity Investments: Site Search from Fidelity that includes the current rate. I think you can also look back to the previous rate if that is to your advantage.

As far as dipping in - you can divy up your ira into smaller ira's but you don't want to mess with the IRA at all that the 72t is taken from - this can be a very taxing event. If you split your IRA into several you can start a 72t on one of the untouched funds if needed.

FinanceDude · 01-03-2008, 08:58 AM

You need to get and read IRS Publication 590. 72T rules are very strict.

Allegany · 01-04-2008, 08:06 PM

Go to 72t On the net they explain the process very well and have calculators and sample documentation sheets.

cute fuzzy bunny · 01-04-2008, 08:20 PM

Retire Early: Can I withdraw money from my IRA before age 59½ ?

Everything you've always wanted to know about 72T

01-03-2008, 05:59 AM	#1
retiringat50 Recycles dryer sheets Join Date: Dec 2007 Posts: 79	72t - whats the percent that can be taken out? I understand with 72t one would need to either take the same amount of money out every year for 5 yrs or until one reaches 59.5 (whatever is longest). Just read that there is a % from last years retirement fund that can be taken. What is that %? and id still be able to dip in if I find its not enough, right

01-03-2008, 08:57 AM	#2
smileydog Recycles dryer sheets Join Date: Feb 2007 Posts: 130	The % is determined from 120% of the federal mid term rate ( no more than ). See link Fidelity Investments: Site Search from Fidelity that includes the current rate. I think you can also look back to the previous rate if that is to your advantage. As far as dipping in - you can divy up your ira into smaller ira's but you don't want to mess with the IRA at all that the 72t is taken from - this can be a very taxing event. If you split your IRA into several you can start a 72t on one of the untouched funds if needed. __________________ When you row another person across the river, you get there yourself. Author: Fortune Cookie

01-03-2008, 08:58 AM	#3
FinanceDude Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Aug 2006 Posts: 7,429	You need to get and read IRS Publication 590. 72T rules are very strict. __________________ Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:)

01-04-2008, 08:20 PM	#5
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Retire Early: Can I withdraw money from my IRA before age 59½ ? Everything you've always wanted to know about 72T __________________ Many an optimist has become rich by buying out a pessimist

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01-04-2008, 08:06 PM	#4
Allegany Dryer sheet wannabe Join Date: Feb 2007 Posts: 22	Go to 72t On the net they explain the process very well and have calculators and sample documentation sheets.

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