Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Rio

This is something I just heard about recently. Supposedly you can take money out each year without the penalty but it needs to be a consistent amount each year. I’m very sketchy on the details.

Here is a site with details: http://retireearlyhomepage.com/wdraw59.html

This from the web site:

Fortunately, there is a loophole known as a “72(t) exception”. Under current tax law (Internal Revenue Service Code Section 72(t)(2)(a)(iv)) you can avoid the 10% penalty tax if you take “substantially equal periodic payments.” The Internal Revenue Service 1989 Cumulative Bulletin (Notice 89-25 on Page 666) tells you how to calculate what it considers to be “substantially equal periodic payments”. IRS Revenue Ruling 2002-62 adds additional details and clarifies some issues pertaining to IRA early withdrawals. All of these engrossing volumes are very likely available at your local law library


11 posted on 03/20/2013 8:34:15 AM PDT by Sir Lurks Alot
[ Post Reply | Private Reply | To 5 | View Replies ]


To: Sir Lurks Alot

bump for later


13 posted on 03/20/2013 8:36:28 AM PDT by GSD Lover
[ Post Reply | Private Reply | To 11 | View Replies ]

To: Sir Lurks Alot

http://www.forbes.com/sites/advisor/2012/02/13/the-72t-early-distribution-from-your-ira/

The 72t Early Distribution From Your IRA
Jim Blankenship, CFP, EA Jim Blankenship, CFP, EA, Contributor


38 posted on 03/20/2013 10:53:34 AM PDT by abb
[ Post Reply | Private Reply | To 11 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson