Can multiple retirement savings accounts and vehicles
be used for a 72t distribution?
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A word of caution about 72t distribution penalties
72t Done Correctly Works! Do it wrong by withdrawing too much and you can end up broke! PLUS, the IRS may assess the 10% early withdrawal penalty on all amounts withdrawn if the IRA account runs out of money before the end of the 72t scheduled time frame. That’s the rule. Therefore, it’s imperative you work with a specialist, who knows what they are doing! Bank Certificates of Deposit (CD’s) can not be used effectively as an investment vehicle for a 72t distribution.
Experience, Knowledge and Wisdom Do Matter
Not all Financial Advisors, CPA’s, Tax Attorneys, Banks or Investment Companies know about this little known IRS 72(t) rule. Also, NOT ALL companies know how to structure a 72t, how to set it up properly, or even have the technology or electronic means available to execute and code these 72t early withdrawal distributions.
There are many investment options that do work effectively and many that we would suggest that you avoid. We can provide you examples of the ones that will work effectively. Just ask and we can provide that information to you.
Planning to Use a 72t?
We have effectively set-up and administered 72t’s for income withdrawals prior to age 59 1/2 MANY TIMES throughout almost 50 years and it works, if done correctly. It is completely legal and ANYONE (at any age) can use a 72t. Once again, many companies and most advisors, simply do not know HOW to properly structure and administer a 72t. Work with a firm who is experienced, knowledgeable and specializes in this specific type of planning.
Would you like an ESTIMATE of what YOUR 401(k), TSP, 403(b), 457 plan or IRA might produce for an income, using a 72t for early withdrawals to eliminate the IRS penalty? Simply provide us: your age, your beneficiaries age, the amount of money in your retirement plan and using the current IRS rates with our 72t calculator, we will prepare an income estimate for you. No Obligation. We mean it.
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NOTE: This early withdrawal provision also works for non-IRA annuities to eliminate the IRS 10% early withdrawal penalty. It’s called a 72(q) for non-qualified annuities and works the same as a 72t for IRA’s.
Learn how a 72(t) works or connect with us if you have an early retirement question?
NOTE: Investment return and principal value will fluctuate, and shares/units, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Dollar Cost Averaging does not assure a profit nor does it protect against loss in declining markets. The above reference is NOT an offer to sell a product or service. Neither Spivak Financial Group or Centaurus Financial Inc. offers legal advice. Please consult with a Tax Professional for your personal tax consequences.