It is possible to officially be done working by age 55. You don’t have to work up into your 60’s and 70’s before you can enjoy the sweet benefits of retired living and financial freedom. The problem is that financial security after your career isn’t something that just simply happens. To make it work and really succeed, you need to have a game plan for how to retire at 55. Even though it will involve a little bit of planning, wise decision-making, and capital to invest, I think you will find it much easier to accomplish retirement than you think. … [Read more...]
What are the 401k Withdrawal Rules for Getting My Money Back?
Before you go putting too much money into your employers retirement plan to try to hide it from Uncle Sam, it may help you to understand the 401k withdrawal rules and what is involved with getting your money back. For example: What if you have an emergency and you need the money right now? What if you are planning on buying a house? What if you are plan to retire early (before age 59-1/2)? It’s Always Your Money: The first thing you should know is that when it comes to putting your money into your employer's 401k retirement plan is that the money is always yours (not your employers)! This is a very common misconception … [Read more...]
The 72t Rules – How to Make Early Retirement Withdrawals
If you’ve ever wanted to get early access to your retirement savings before age 59-1/2 without having to pay the additional 10% penalty, then you might be delighted to know that there is a little known exception to this process known as the 72t rule. According to the exceptions listed in Section 72(t)(2), the owner of the retirement fund can elect to take distributions using something called a series of substantially equal periodic payments (or SEPP for short). What this means is that you and the IRS would agree to take out pre-calculated amounts each year for the next 5 years or until you turn age 59-1/2 (whichever is later). Each of … [Read more...]