Rule 72(t) Explained: No Penalties on IRA Withdrawals Before 59 1/2?

[@Jazzwealth]

Thanks for watching! Niche video today but there's a lot of good stuff in this rule/video you should know! Drop your thoughts below!

[@InfoSecSeeker]

What happened to the closing beat?

[@brucesmith6868]

Thanks Eric cool site

[@fictitiousnightmares]

So if all goes right, I will be leaving my company and the company is making the last day Dec. 31 and refuses to negotiate, unfortunately. If it were Jan. 1 instead I would meet the Rule of 55. Seriously sucks they won't make my last day 24 hours later (or less depending on how you think about it). So 72(t) it is going to be in order for me to survive. I don't know why everyone acts like it is so confusing and complicated. It really isn't. Do the calculation correctly or use an online calculator that does it properly. Wala, hardest part done. From there if your brokerage reports it as code 1 instead of 2, then you need to submit form 5329 with your taxes. Just know the rules/how it works which are also simple and you won't have any issues. Not sure what is so complicated about that.

[@martinguldnerAutisticSwanGuru]

I assume the example you showed with the rule 72(t) was a Traditional IRA? From what I understand contributions for a Roth IRA can be withdrawn tax and penalty free at anytime; so the rule 72(t) can be done on Roth IRA earnings withdraws without waiting 5 years? I heard it was best to roll over a Roth 401k into a separate Roth IRA because of Employer pre tax roll overs. Do you have to wait 5 years to do anything with a Roth 401k roll over if any Roth IRA was already opened for 5 years?

[@fictitiousnightmares]

72(t) does NOT apply to Roth. It is meant for traditional pre-tax accounts.

[@martinguldnerAutisticSwanGuru]

@@fictitiousnightmares so only can touch contributions until 59 and a half on Roth accounts without a penalty?

[@Patrick-iq1do]

Early retirement at 46 with SEPP Fixed Lifetime SPIA Annuities.