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

[retiringat50]

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]

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]

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

 

[Allegany]

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

 

[cute fuzzy bunny]

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

Everything you've always wanted to know about 72T