Tried to setup a 72t SEPP withdrawal with Vanguard - Extremely disappointed

[nun]

Vanguard is in the business of offering financial advice, they have CFP's on staff that do just that. If you have enough in your account they'll even have free consultations with you, and are not commissioned based. Whether a Vanguard CFP would help answer the questions, I have no experience but believe they would.

I think a Vanguard CFP would do what every planner does; give you AA advice, tell you to tax defer and point you towards low cost mutual funds. They would not get into tax planning like 72t. For that you need a specialist.

 

[zinger1457]

If you haven't already, suggest you take a look at 72t.Net |IRC Section 72(t) | 72t Distribution | 72t Calculators | SEPP Plans. They have some good calculators and a forum to gather more information. I had looked into setting up a 72t but decided not to. It was certainly my understanding from the information I gathered that you are on your own when setting up a 72t, don't expect any assistance from any financial company. You need to be very careful in selecting the proper withdrawal rate. A very small miscalculation could result in a big IRS penalty. From looking at the 72t.net web site the current 72t withdrawal rates are very low (1.57%) and going down.

 

[CyclingInvestor]

I have used 72t distributions to live on since I retired in 2006. I use the 'annual recalc' method, so a very simple spreadsheet suffices for distribution calculations.

I have my IRAs at Schwab. They were very helpful in transferring my accounts and showing me the ins and outs of their website and online forms, but I got all the info I needed about 72t's from the highly regarded 72t.net. I needed to understand the rules myself to feel comfortable.