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Withdrawing from IRAs, 401k
04-28-2005, 09:27 AM
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#1
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Dryer sheet aficionado
Join Date: Apr 2005
Posts: 31
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Withdrawing from IRAs, 401k
Isn't the minimum age to withdraw from these retirement accounts 59.5 or something like that? So if one was to retire early, say like at 45, you would have to wait all that time to start taking money out without penalty? Or would there be a way around that for early retirees?
Thanks!
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 09:34 AM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Withdrawing from IRAs, 401k
Theres an IRS statute that allows early withdrawal from retirement accounts. I forget the name. You have to divide the account up into equal annual withdrawals and then stick with that schedule. Theres something in the FAQ about it.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 09:37 AM
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#3
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Dryer sheet aficionado
Join Date: Apr 2005
Posts: 31
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Re: Withdrawing from IRAs, 401k
oh ok, thanks, i'll look that up.
I know also Roths offer other exceptions right? Catastrophic medical bills, 1st home purchase, i think. Also, can't you deduct your contributions from the Roth at any time? IT's just your gains that would be penalized and taxed?
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 09:39 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Withdrawing from IRAs, 401k
I think those situations are true of all retirement accounts.
You can always take a distribution and pay any applicable taxes and penalties. For dire circumstances, the penalties are sometimes waived.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 09:47 AM
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#5
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
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Re: Withdrawing from IRAs, 401k
 Quote:
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Theres an IRS statute that allows early withdrawal from retirement accounts. *I forget the name. *You have to divide the account up into equal annual withdrawals and then stick with that schedule. Theres something in the FAQ about it.
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I think it's called SEPP, Substantially Equal Periodic Payments.
Patrick
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 09:49 AM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Withdrawing from IRAs, 401k
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 03:30 PM
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#7
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Recycles dryer sheets
Join Date: Aug 2004
Posts: 113
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Re: Withdrawing from IRAs, 401k
And note that even though SEPP's are not allowed on a 401k, there's no reason you can't roll over the 401k into an IRA and then do the SEPP. This realization completely changed my ER thinking.
__________________
Robert<br />https://www.austinexplorer.com/<br />https://www.texashiking.com/
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 03:33 PM
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#8
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Dryer sheet aficionado
Join Date: Apr 2005
Posts: 31
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Re: Withdrawing from IRAs, 401k
Quote:
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And note that even though SEPP's are not allowed on a 401k, there's no reason you can't roll over the 401k into an IRA and then do the SEPP. *This realization completely changed my ER thinking.
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yea, that is a good point
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 04:35 PM
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#9
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Re: Withdrawing from IRAs, 401k
It's certianly my road map! 72(t) rule! I'm hoping to start saving in after tax accounts in a couple of years along with the Roth and 401(k) maxing. I'd like to hedge my bets on future tax rates as much as possible, since current rates are so low.
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Re: Withdrawing from IRAs, 401k
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04-28-2005, 05:07 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2002
Posts: 3,875
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Re: Withdrawing from IRAs, 401k
Yeah, back in 1993 I studied it from every angle
(early withdrawal from IRA). I was sure I would have to do it. Twelve years later and I haven't touched it yet.
Now at age 60, I can take it whenever. It's become
a sort of challenge to see how long I can go.
JG
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