Tag: IRA
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PSA: we tested the top 6 “72(t) calculator” results on Google. All of them fail the IRS’s own reference examples.
If you’re planning early retirement with a 72(t) SEPP distribution, you need accurate calculations. We researched the topic and discovered that every popular calculator we tested produces incorrect results when compared to the IRS’s own published examples. The IRS Reference Example: What we found testing the top page Google results: Why this matters: 72(t) is one…
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Understanding 72(t) SoSEPP Distributions
For many investors, tapping retirement funds before age 59½ normally means a 10% early withdrawal penalty. But the IRS provides us with an exception: Sequence Of Substantially Equal Periodic Payments (SoSEPPs) under IRC §72(t). If you follow the rules carefully, you can set up penalty-free withdrawals before age 59½. This post explains who can use…
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IRA to ROTH conversion: The Basics
Roth conversions are often used as a retirement tax planning tool. They offer the opportunity to pay taxes now – often at a lower rate – in exchange for tax-free withdrawals later in life. In this post, we’ll walk through the standard, conventional guidance for when and why to convert funds from a traditional IRA…