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11-13-2017, 01:03 PM
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#61
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
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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.
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01-15-2018, 11:17 AM
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#62
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Dryer sheet aficionado
Join Date: Jul 2017
Location: charlotte
Posts: 42
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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.
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01-15-2018, 12:05 PM
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#63
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gone traveling
Join Date: Mar 2015
Location: Greenville
Posts: 653
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Quote:
Originally Posted by brainsagolfer
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.
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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.
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01-15-2018, 12:13 PM
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#64
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,359
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+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
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01-15-2018, 12:31 PM
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#65
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Dryer sheet aficionado
Join Date: Jul 2017
Location: charlotte
Posts: 42
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Quote:
Originally Posted by pb4uski
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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
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01-15-2018, 12:35 PM
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#66
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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Quote:
Originally Posted by brainsagolfer
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
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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.
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01-15-2018, 12:59 PM
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#67
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,359
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^^^^^ 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
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