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Old 10-25-2016, 03:55 PM
110 posts, read 133,730 times
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Originally Posted by jiminnm View Post
Depending on the investment options in your 401k, you could consider rolling over your 401k to an IRA and taking withdrawals under rule 72t (using SEPPs - substantially equal periodic payments). The rule are very specific and failure to follow them will result in a tax hit. I used that when I retired at age 52, and took withdrawals from age 54-59 1/2 (when the 10% tax penalty goes away). I began s/s at age 62. While the monthly amount increase to age 70, the present value of the future stream of payments is generally greater at age 62-63 than later 9assuming a normal life span on standard actuarial tables).

Here is one explanation of 72t:
Rule 72(t) Definition | Investopedia
That was one of the options the financial advisers noted but none of them recommended it. One option was to move just a portion of the 401k into an IRA and then hit "72t" those moved funds leaving the balance untouched. Something like that might be viable if needed. Then if needed I could still work with the 55 rule on the 401k as a backup I imagine. Options are a plenty I guess.
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