Join Early Retirement Today
Reply
 
Thread Tools Display Modes
How to Handle Profit Sharing Distribution
Old 10-18-2006, 07:10 PM   #1
Dryer sheet wannabe
 
Join Date: Apr 2005
Posts: 17
How to Handle Profit Sharing Distribution

Plan to retire in 3 years at age 55. Will have about 600K in Profit Sharing. I would like to take 100K to pay off my mortgage. Can I do that without getting the 10% penalty for early withdrawl plus take payments on the remaining amount via 72t.
Thanks,
Rollie
Rollie is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: How to Handle Profit Sharing Distribution
Old 10-19-2006, 08:06 AM   #2
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
Re: How to Handle Profit Sharing Distribution

This is a 401k profit sharing plan? If so, if you are leaving the job with the plan in the year you turn 55, there will be no penalty on the distributions you take. Of course, you will have to pay income taxes. The 72t rules regarding substantially equal payments won't apply unless you roll the money into an IRA.

http://www.irs.gov/publications/p575/index.html

See this too: http://early-retirement.org/forums/i...31935#msg31935
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: How to Handle Profit Sharing Distribution
Old 10-19-2006, 08:56 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Re: How to Handle Profit Sharing Distribution

Quote:
Originally Posted by Martha
This is a 401k profit sharing plan? If so, if you are leaving the job with the plan in the year you turn 55, there will be no penalty on the distributions you take. Of course, you will have to pay income taxes. The 72t rules regarding substantially equal payments won't apply unless you roll the money into an IRA.

http://www.irs.gov/publications/p575/index.html

See this too: http://early-retirement.org/forums/i...31935#msg31935
Just noticed the thread................Martha beat me to it............
__________________
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).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: How to Handle Profit Sharing Distribution
Old 10-19-2006, 02:51 PM   #4
Dryer sheet wannabe
 
Join Date: Apr 2005
Posts: 17
Re: How to Handle Profit Sharing Distribution

Thanks for the info!
Rollie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Interesting HSA Distribution Rule kramer Health and Early Retirement 28 05-10-2007 01:00 PM
SWR range and distribution wabmester FIRECalc support 5 06-05-2006 03:39 PM
I am new to this forum. Need info on IRA distribution metro9 FIRE and Money 1 01-06-2006 01:35 PM
Fund Tax Deferred Accounts on Jan 2 TromboneAl FIRE and Money 20 08-14-2005 06:48 PM
Easy Way To Find The Profit ag4gt Other topics 0 06-23-2005 06:40 AM

» Quick Links

 
All times are GMT -6. The time now is 11:15 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.