Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-13-2017, 01:03 PM   #61
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 667
Great topic, thanks for posting OP. My retirement age/amount will be pretty much what you're targetting.

Note to self: make sure to have at least 5yrs of after-tax savings/cash and then start converting IRA to ROTH each year.
__________________

dvalley 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!

IRS reform needed
Old 01-15-2018, 11:17 AM   #62
Dryer sheet wannabe
 
Join Date: Jul 2017
Location: charlotte
Posts: 16
IRS reform needed

SO like many i have chucked a bunch of $ in 401k's of all of my employers. I worked 20 years for one Co, then 6 years, and presently 5 years. I now have what i think may be enough saved to retire early- But of course it is not that easy.
Since i have the 1.3 mil in a IRA (rollover from previous employers) i can only access THAT $ with a 72t, since i am 55.5 YO. BUT if i had that amount in my present employers 401k, they would let me access as much as i want.

WEIRD that the Gubmint would have such different rules....

It seems almost everyone on this site hates the idea of a 72t, but what if you switch employers your whole career and end up with 1.5 mil in an ira, but only 150K in your present employer 401k when you are 56?

I like the 72t idea, but i think the penalty for over withdrawal should be amended. Maybe tell me- hey you took 100 $ too much, We have to penalize you 500$, and you have to return the 100$- makes sense, NO?

I also think the 72t should be able to be used as a bridge to 59.5- why does it have to be 59.5 years old or 5 years - whichever is LONGER?

I have seen a lot of people from my first employer ER after 55 with the 401k exception- sucks i dont have the same option even though i am probably in the same financial position.
__________________

brainsagolfer is offline   Reply With Quote
Old 01-15-2018, 12:05 PM   #63
gone traveling
 
Join Date: Mar 2015
Location: Greenville
Posts: 653
Quote:
Originally Posted by brainsagolfer View Post
SO like many i have chucked a bunch of $ in 401k's of all of my employers. I worked 20 years for one Co, then 6 years, and presently 5 years. I now have what i think may be enough saved to retire early- But of course it is not that easy.
Since i have the 1.3 mil in a IRA (rollover from previous employers) i can only access THAT $ with a 72t, since i am 55.5 YO. BUT if i had that amount in my present employers 401k, they would let me access as much as i want.

WEIRD that the Gubmint would have such different rules....

It seems almost everyone on this site hates the idea of a 72t, but what if you switch employers your whole career and end up with 1.5 mil in an ira, but only 150K in your present employer 401k when you are 56?

I like the 72t idea, but i think the penalty for over withdrawal should be amended. Maybe tell me- hey you took 100 $ too much, We have to penalize you 500$, and you have to return the 100$- makes sense, NO?

I also think the 72t should be able to be used as a bridge to 59.5- why does it have to be 59.5 years old or 5 years - whichever is LONGER?

I have seen a lot of people from my first employer ER after 55 with the 401k exception- sucks i dont have the same option even though i am probably in the same financial position.
If you are still employed, and your employer has a 401k program, I think you can roll any required retirement funds over to the 401k plan? Worth a check, then you could have all funds in one (current employer) 401k, retire, and use the Rule of 55.

As I am sure lot of people will point out, you need to check the SPD of the current employer 401k plan to make sure about withdrawal frequency, etc.
Pilot2013 is offline   Reply With Quote
Old 01-15-2018, 12:13 PM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,193
+1 many 401k plans allow active employees to roll in money from a tIRA to the employer's 401k.

https://www.nerdwallet.com/blog/inve...r-ira-to-401k/
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 01-15-2018, 12:31 PM   #65
Dryer sheet wannabe
 
Join Date: Jul 2017
Location: charlotte
Posts: 16
Quote:
Originally Posted by pb4uski View Post
+1 many 401k plans allow active employees to roll in money from a tIRA to the employer's 401k.

https://www.nerdwallet.com/blog/inve...r-ira-to-401k/
I was trying so hard to figure out how to get the $ OUT of my present employer 401k that i had not thought of the reverse. I need to check the plan to see if i can take distributions VS lump sum from their plan.

The unfortunate thing is, none of my Mega Corp funds beat the S&P - but the Trowe price funds from my IRA are crushing the S&P- so i may just have to ....sigh....... sigh again......wait a few years
brainsagolfer is offline   Reply With Quote
Old 01-15-2018, 12:35 PM   #66
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,104
Quote:
Originally Posted by brainsagolfer View Post
I was trying so hard to figure out how to get the $ OUT of my present employer 401k that i had not thought of the reverse. I need to check the plan to see if i can take distributions VS lump sum from their plan.

The unfortunate thing is, none of my Mega Corp funds beat the S&P - but the Trowe price funds from my IRA are crushing the S&P- so i may just have to ....sigh....... sigh again......wait a few years
Stop putting money into 401k above the match amount and start building up after tax savings that could be used to tied you over to 59.5.
RE2Boys is offline   Reply With Quote
Old 01-15-2018, 12:59 PM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,193
^^^^^ good idea
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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
using actual data or monte carlo sims-4% rule mathjak107 FIRE and Money 43 09-18-2014 03:03 AM
Adjustment for using the year's high with the "4%" rule? bamsphd FIRE and Money 18 05-03-2011 03:32 PM
FireCalc using 95% rule ? Trawler FIRECalc support 0 01-24-2011 08:53 AM
So, do you feel your age? Act your age? Like your age? vickko Life after FIRE 84 04-10-2010 01:47 PM
100-Age Rule Impacted by Real Estate Craig FIRE and Money 12 01-07-2005 12:40 PM

 

 
All times are GMT -6. The time now is 05:07 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.