Yeah, i know about the 72t rule but it sounds like a lot of work, i know i can get money from my 401k since i,m57 but i want to use the money in my retirement
first.
Heck, you can do that even in your 30s. There's no penalty on conversions. You just need to use other non-IRA/401k money to pay taxes.(1) Once you retire after 55 yrs old (even before 59.5), can convert funds from IRA to a ROTH IRA if you are willing to pay the taxes on the converted funds. Then can use the ROTH funds (but not the earnings gained while within the ROTH account) as you wish without penalty.
I thought NUA only applied to stock options?(2) If you pull from your 401k account, make sure you understand the Net Unrealized Appreciation rules. Check if they apply to your 401k. If they do, you will need to be careful about how you withdraw from the 401k to ensure you still get the tax advantages of the NUA rules if you wish to take them.
Yes, I was referring to employee stock options/employee stock ownership plans (ESOP) so shares of company/employer stock.My understanding is that NUA applies to shares of your employer held in a 401K.
I wasn't aware it applied to options.