June 30th = last day

[chrisaukcam]

Well like so many, big corporate decided to speed up my retirement process. I am 90% sure that I will just go ahead and pull the plug and start my retirement now. But wanted to share my situation and see if anyone can poke holes in the plan, or give advice on what I need to do/watch.

I am just short of my 57th birthday.

1. Since I am over 55 I can access the money in my company 401k without the early withdrawal penalty. So I will use that until...

2. age 59 1/2 when I can access my IRA which has the bulk of my retirement money. I can use that as a sole source of income until...

3. I plan to file early for SS at age 62 (Yeah I know I don't get the full benefit, but I have already had a heart attack). Then I can reduce the amount I withdrawal from the IRA and it should last me for good long while.

I do have some funds in a ROTH IRA, but not a whole lot. Maybe a years worth of income. As I understand, you can't withdrawal early unless you have a hardship. So those funds can be accessed at 59 1/2 too.

 

[2017ish]

....

3. I plan to file early for SS at age 62 (Yeah I know I don't get the full benefit, but I have already had a heart attack). Then I can reduce the amount I withdrawal from the IRA and it should last me for good long while.
...

You've probably already run all the spending scenarios (glanced at some of your old posts)--good coverage with modest withdrawal rate?

Health Insurance?

Are you married? If so, does spouse have same or higher social benefits as you from own earning history? If not, and if spouse is female with normal life expectancy, I'd hesitate at age 62 drawing. If only you, the health history makes a difference.

Good luck!

 

[chrisaukcam]

health insurance = COBRA and then obamacare

Married but wife does not qualify for SS on her own. She worked a little but not enough quarters to qualify. Although she does get a SS check for disability.

 

[skipro33]

I think, before you retire, you can borrow $50,000 from your IRA. A payroll deduction pays it back to your account. When you retire, if there is still a balance, it's treated like a draw. No penalties for age related withdraw from an IRA before 59 1/2. I did this when I retired at 56. This banked my 401K, which is available immediately upon retirement.
Just a thought if you wanted to maximize your access to your money prior to 59 1/2.

 

[GravitySucks]

You should find another job and keep paying into SS.....

Looks from your previous posts that you are FI, and it's not a big difference time wise to your original plan date. I am doing close to what your plan is, living off a smaller 401k until 59.5 when I have access to the bigger nut.

Do you have a good handle on what the COBRA and ACA costs will be? Is your DW Medicare eligible? Have you looked into possible Unemployment Insurance?

Best of Luck to you.

 

[robertf57]

One of us is confused....

I think, before you retire, you can borrow $50,000 from your IRA. A payroll deduction pays it back to your account. When you retire, if there is still a balance, it's treated like a draw. No penalties for age related withdraw from an IRA before 59 1/2. I did this when I retired at 56. This banked my 401K, which is available immediately upon retirement.
Just a thought if you wanted to maximize your access to your money prior to 59 1/2.

To the best of my knowledge, the only "loan" you can take from an IRA is a 60 day roll over. (IRC Section 72(p)(4); Reg. Section 1.72(p)-1, Q&A-2) Only qualified (and government) plans can offer loans, if the plan documents permit. Many 401k plans are designed to allow withdrawals if you separate from the company in the year you turn 55 years old or later. IRC 72(t)(2)(A)(v), 72(t)(10)