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ER before 59.5 and 72t
Old 09-01-2011, 10:59 AM   #1
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ER before 59.5 and 72t

My planning shows that I can ER and can live off my taxable accounts until I can withdraw from my IRAs at 59.5. I'll be spending them down a bit, but I don't need to 72t to survive. However, my taxable income will be quite small, so should I 72t anyway up to say the 15% tax limit?
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Old 09-01-2011, 11:12 AM   #2
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My planning shows that I can ER and can live off my taxable accounts until I can withdraw from my IRAs at 59.5. I'll be spending them down a bit, but I don't need to 72t to survive. However, my taxable income will be quite small, so should I 72t anyway up to say the 15% tax limit?

Or you could convert to a roth an amount to the 15% bracket... no reason to pay taxes on any gains going forward...
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Old 09-01-2011, 11:14 AM   #3
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take a look at the ORP (Optimal Retirement Calculator)

http://www.i-orp.com/

They do a tax-optimal withdrawal scheme based on a constant growth model. They may have you doing some Roth IRA conversions also.

But to answer your question directly, yes you probably should take money out at the 15% rate. Just verify that with ORP though.
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Old 09-01-2011, 11:17 AM   #4
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Remember if you start a 72T you have to stick with it for five years or until you are 59.5 years of age, whichever is longest. What I am trying to say is before starting a 72T, do your homework. As far as your situation, depends on your spending habits and expenses.
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Old 09-01-2011, 11:37 AM   #5
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Or you could convert to a roth an amount to the 15% bracket... no reason to pay taxes on any gains going forward...
yep that's the way to go
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Old 09-01-2011, 03:48 PM   #6
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Or you could convert to a roth an amount to the 15% bracket... no reason to pay taxes on any gains going forward...
This is what I decided to do.
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