Rollover and 72t
I gave the search a shot but I'm having trouble putting together an answer to my quandry.
I just switched gigs and want to roll my old company 401k to Vanguard. I already have a rollover there. Regarding 72t distributions, which I may employ sometime in the future, how do they get applied to rollovers? I thought I remember reading something here in the past outlining how if you roll a 401k over to and IRA, you should break it up into chunks.
Example - 500k 401k - when rolling it over to an IRA, break the 500k up into 100k chunks (or something along those lines), so you can 72t against each respective 100k IRA(s), versus the entire 500k, thereby giving you more flexiblity.
Does that make sense? Or did I dream this up somewhere?
I'd like to figure this out before I do anything that might hamstring me in the futue if/when I ever get to FIRE, and I'm younger than 59.5.
Any help/insight would be appreciated.
Diggin' my way to financial freedom, one buck-at-a-time