I’ve done a number of interviews on the show with early retirees and early retiree hopefuls. One common theme is that many of them are using traditional retirement accounts but are planning to retire before 59.5.
How is that possible without paying a bunch of penalty tax?
Today, I share with you the answer to that question.
- They may not actually take distributions from the retirement accounts.
- They might pay the 10% penalty tax because it’s cheaper than the alternative.
- They might do a Roth Conversion Ladder
- They might use the 72(t) SEPP rules.
Enjoy the show!
Joshua
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Joshua J. Sheats, MSFS, is the world's leading authority on integrating lifestyle goals and money goals without conflict. He teaches normal people how to seamlessly connect the science of financial planning with the joy of goal achievement.
Joshua is dedicated to helping normal people achieve financial freedom by merging creative (and crazy) ideas from the world of personal finance with the academic integrity of formal financial planning. He simplifies complex money topics and makes boring financial mumbo-jumbo less boring.
