Quote:
Originally Posted by jiminnm
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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