The Onceler
Dryer sheet aficionado
I'm far from knowledgeable on this. Very far. But let's say one has 401k holdings that might trigger confiscatory taxes once RMDs are required.
If a DBP can be delayed and SS can be delayed can a bridge with early §72(t)(2)(A)(v) early withdrawals take the place of taxable amounts used as a bridge?
1. Delay DBP until 65. Avoid early commencement reduction.
2. Delay SS until 70.
3. Tap 401k at say 57 upon RE. Tap it hard for all needs.
4. Leave taxable accounts alone.
5. When DBP is tapped at 65, the 401k will have been depleted but overall income stream would have been smoothed and RMDs at 70 lessened in impact.
At least that is my working hypothesis.
Anyone done this or have ideas or comments? Again I know so little I don't even know what I don't know.
If a DBP can be delayed and SS can be delayed can a bridge with early §72(t)(2)(A)(v) early withdrawals take the place of taxable amounts used as a bridge?
1. Delay DBP until 65. Avoid early commencement reduction.
2. Delay SS until 70.
3. Tap 401k at say 57 upon RE. Tap it hard for all needs.
4. Leave taxable accounts alone.
5. When DBP is tapped at 65, the 401k will have been depleted but overall income stream would have been smoothed and RMDs at 70 lessened in impact.
At least that is my working hypothesis.
Anyone done this or have ideas or comments? Again I know so little I don't even know what I don't know.