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To: mikelets456

401k is with your current employer?


5 posted on 03/20/2013 8:29:26 AM PDT by Rio (Tempis Fugit.)
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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
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To: Rio

Yes, through my company and I’m 100% vested.


41 posted on 03/20/2013 11:15:53 AM PDT by mikelets456
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