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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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Did you, or will you, 72t to ER?
Old 02-15-2011, 06:14 AM   #1
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Did you, or will you, 72t to ER?

Here's a poll to find out what percentage of us have, or plan to, 72t to finance our ER.
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Old 02-15-2011, 06:43 AM   #2
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Quote:
Originally Posted by nun View Post
Here's a poll to find out what percentage of us have, or plan to, 72t to finance our ER.
"72t" means... what?
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Old 02-15-2011, 06:49 AM   #3
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Didn't have to. Savings used for retirment till 59.5; started drawing from TIRA/SPIA after that age...
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Old 02-15-2011, 07:01 AM   #4
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Quote:
Originally Posted by East Texas View Post
"72t" means... what?
Definition: Substantially Equal Periodic Payment (SEPP) / 72(t) Payments | 72t Advisors

It's how you get to withdraw from a TIRA before age 59.5 and avoid the 10% extra tax on withdrawls...
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Old 02-15-2011, 08:50 AM   #5
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This will be an interesting survey. We are always being encouraged to save in tax deferred accounts and as I have access to a state pension plan a 457 and a 403b I could tax defer an awful lot. However, I don't max out my tax deferral possibilities as I like after tax saving for the flexibility it gives and I'd hate to go into ER without a good after tax balance for unforeseen issues.
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Old 02-15-2011, 08:58 AM   #6
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Don't plan to, won't need to. 401k is accessible at 55 if you "retire". I was "retired" at 53, but bridged to 55. As it is, probably won't try to voluntarily retire until 59.5 or later anyway...
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Old 02-15-2011, 09:16 AM   #7
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This poll is missing the lesser known cousin IRS Rule 72Q, same rules as 72T but applies to Annuities; Certain Proceeds of Endowment and Life Insurance Contracts.

I didn't answer, I'm in the Maybe/Not Sure boat.
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Old 02-15-2011, 09:18 AM   #8
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Am not at that point yet, but I am hoping to NOT 72t, so I can use those years to Roth convert.
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Old 02-15-2011, 09:28 AM   #9
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When DW retires we plan on keeping our IRAs untouched until at least 59.5. It shouldn't be too hard, only 15-20% of our investments are in tax-deferred accounts.
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Old 02-15-2011, 10:48 AM   #10
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Since I couldn't retire until age 61.5, it wasn't an issue.
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Old 02-15-2011, 10:53 AM   #11
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We plan to use taxable until 59 1/2
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Old 02-15-2011, 11:02 AM   #12
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Probably. I'm at least planning for the likelihood that I'll do it, though if I can pull the plug without getting to my IRAs and 401K before age 59.5, I'll certainly hold off.
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Old 02-15-2011, 11:07 AM   #13
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ER'd at 49 in '96 and have not needed tax deferred funds.
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Old 02-15-2011, 11:57 AM   #14
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Yes, 72t's a portion of my traditional IRA. Still have several years to go before tapping into IRA before penalties without 72t'ing it.
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Old 02-15-2011, 12:43 PM   #15
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Currently about 50% of my funds are in taxable accounts. I'll be receiving an inheritance in a few months which will push that figure to 60%. When I do ER or ESR, the taxable accounts will take me to age 60 (and hopefully beyond).

The good part of this is that I don't have to fiddle around with a 72(t). The bad part is that I have to figure out how to invest the money in the taxable accounts while remaining tax-efficient.
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Old 02-15-2011, 03:08 PM   #16
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Wow only 18% using 72t to ER. I'm slightly surprised, although I bet if you ER at 40 or 50 you're far more likely to 72t than if you retire at 55.
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Old 02-15-2011, 03:17 PM   #17
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No, since I turn 55 this year and the bulk of my retirement savings are in a 401(k) with my current company.
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Old 02-15-2011, 04:53 PM   #18
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I prefer not to utilize 72T, but still unsure for now.
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Old 02-15-2011, 05:23 PM   #19
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I voted No, but after answering I got curious and went back to ESPlanner to see what it recommended.

For tax minimization it recommended taking income starting in the first year of retirement from both tax deferred and taxable sources: 1/3rd from my 401k, 1/3 from DH's 401k and 1/3 from taxable.

I assume the recommendation is to reduce RMD at 70 1/2 since we will have both a pension and the highest bracket SS payments (assuming SS is still around in 2027).
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Old 02-15-2011, 05:51 PM   #20
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My plan is to spend savings until I'm 62 (5 1/2 yrs) and then tap the 401K, IRA. I'll also take my wife's social security at 60 which will help ease me along until I decide to take mine. If something bad happens I'll have to regroup. I don't want my personal savings to fall below one years worth of normal spending.
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