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-   -   72t - whats the percent that can be taken out? (https://www.early-retirement.org/forums/f28/72t-whats-the-percent-that-can-be-taken-out-32251.html)

retiringat50 01-03-2008 05:59 AM

72t - whats the percent that can be taken out?
 
I understand with 72t one would need to either take the same amount of money out every year for 5 yrs or until one reaches 59.5 (whatever is longest). Just read that there is a % from last years retirement fund that can be taken.

What is that %?

and id still be able to dip in if I find its not enough, right

smileydog 01-03-2008 08:57 AM

The % is determined from 120% of the federal mid term rate ( no more than ).
See link Fidelity Investments: Site Search from Fidelity that includes the current rate. I think you can also look back to the previous rate if that is to your advantage.

As far as dipping in - you can divy up your ira into smaller ira's but you don't want to mess with the IRA at all that the 72t is taken from - this can be a very taxing event. If you split your IRA into several you can start a 72t on one of the untouched funds if needed.

FinanceDude 01-03-2008 08:58 AM

You need to get and read IRS Publication 590. 72T rules are very strict.

Allegany 01-04-2008 08:06 PM

Go to 72t On the net they explain the process very well and have calculators and sample documentation sheets.;D

cute fuzzy bunny 01-04-2008 08:20 PM

Retire Early: Can I withdraw money from my IRA before age 59 ?

Everything you've always wanted to know about 72T


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