The Cosmic Avenger
Thinks s/he gets paid by the post
OK, I did try to look this up, but it doesn't seem to be a common question, and I thought maybe someone here had experience with this situation. In short, can you retire before 55, then go back to work for that same employer part time for a very short time the year you turn 55 and then qualify for the Rule of 55? (Yes, I've confirmed that my plan does allow regular Rule of 55 penalty-free withdrawals.)
The reason I'm asking is that if we retire at, say, 53, the money we have in brokerage accounts might be stretched thin to get us to 59.5, and we think it would be better to save our Roth IRAs. We both have been consultants for decades, so we think our current employers and coworkers would welcome our expertise and it's not unheard of to step back into this kind of work like that. It would be nice to retire completely for 2 years, then go back for a bit part time. We could also start 72(t) withdrawals to avoid the 10% penalty, but then we can't change it until 59.5, so this would give us more flexibility. It might also allow us to spread out the tax hit more.
The reason I'm asking is that if we retire at, say, 53, the money we have in brokerage accounts might be stretched thin to get us to 59.5, and we think it would be better to save our Roth IRAs. We both have been consultants for decades, so we think our current employers and coworkers would welcome our expertise and it's not unheard of to step back into this kind of work like that. It would be nice to retire completely for 2 years, then go back for a bit part time. We could also start 72(t) withdrawals to avoid the 10% penalty, but then we can't change it until 59.5, so this would give us more flexibility. It might also allow us to spread out the tax hit more.
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