Fermion
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Thanks for this thread. We were getting low on available cash so will probably start one as well.
Since you can tweak the interest rate input it seems you can set the annual amount to exactly the amount you want like $25,000. Withdraw this for 5 tax years (I’m 56) and fill in Form 5329. No other paperwork needed?
I am using Vanguard so I think I will just do a manual transfer to my checking for 25k immediately for 2022 and then another in January 2023-2026.
I'm with Fidelity and just set up a new IRA there to hold the 401k rollover money.
Don't you have to do it officially though? Like set up the 72(t) plan and have it documented? You don't just move $25k out of your account. Fidelity has a 6 page form you have to fill out and sign to initiate a 72(t) plan.
I do agree that you can adjust the amount using a variable rate up to the 5% cap. I was kind of thinking of using 4.95% just to give me that tiny bit of headroom in case the calculators or tables were off, but maybe that is overthinking things and I am safe with 5%. I don't think the IRS busts plans for pennies.