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View Poll Results: Did you, or do you plan to, 72t to ER
Yes 30 29.13%
No 73 70.87%
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Old 02-16-2011, 09:59 PM   #41
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ESR'd at 49 in 2007 w/ 5 years of living expenses in after-tax accounts, which kept me from going off the deep end during the recent market "troubles". I have a large contribution basis in my Roth that I can withdraw tax-free, so I'll fund the next few years of living expenses w/ a 50/50 combo of withdrawals from the Roth contributions and the tIRA via 72t. That will keep the tax hit lower.

If I had it to do over, I'd have put more in after-tax accounts so I didn't have to go the 72t route.

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Old 02-17-2011, 06:22 AM   #42
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Originally Posted by nun View Post
The number of people who can live off after tax only is a surprise to me.
Actually, it was not too hard to have after tax funds to cover my pre-59.5 expenses.

When I still w*rked, we had a range of folks; some who (like me) maxed out their 401(k) and TIRA's for many years (remember, this was the years in which Roth 401(k)'s were not available and Roth IRA's were only around a few years before my retirement).

Since I was focused on retirement, I contributed "above the line" (e.g. taxable) to my 401(k) for many years. We had a decent selection of funds available to us since we had different 401(k) providers over the years, but they kept the previous providers offerings. That means with the last provider (FIDO), I had the option for many non-FIDO funds.

It was easier for me to just "set/forget" by having the deductions taken out of my pay and invested rather than to set up a separate taxable account, which would have required more tracking - tax wise (yeah, I'm lazy).

As for those that would say that I was limited in my selections, our plan did allow an in-service withdrawal/rollover of around a third of my 401(k) balance to an IRA at age 55 - which I did, and allowed me to have even more of a selection of funds.

When I retired, I had my 401(k) funds transferred to a non-traditional rollover IRA and FIDO broke out my taxable contributions (above the line) for many years and rolled them into a taxable MM account, which I used as income.

Just the way I did it...

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Old 02-17-2011, 08:30 PM   #43
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I retired at 57, so I am using 401K withdrawals until 59 1/2 so no need for 72T.
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Old 02-17-2011, 09:32 PM   #44
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I retired at 49, and fully planned on doing the 72(t) route, but as it is, I doubt I will need to.

I have a note to myself to do something I rarely do and look at actual cash flows. I will map out from now, all the way through 99, and see what kind of margin I have, but it should not be too difficult to get by on taxable alone, until 59.
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Old 02-19-2011, 09:38 AM   #45
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Well looks like 75% of ERers are planning to live off taxable income or allowable 401k withdrawals until 59.5 or beyond. I voted no to the question, but arrogantly I thought I'd be in the minority rather than the vast majority.

I plan to ER when my finances get to the point that I don't have to 72t to survive, which is basically when the mortgage is paid off. With that big monthly lump sum gone my expenses will be cut in half and I'll have complete control over what I spend. The kicker is that if I can live of taxable until my pensions kick in at 59.5, 62 and 66, my spreadsheet tells me I won't have to tap the tax deferred until forced to RMDs. However, I still need to look at the best time to take money from the IRA from a tax standpoint and will probably rollover IRA money to a ROTH as soon as I ER to take advantage of my low taxable income.

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