Rule of 55 and 72(t) Retirement Income Planning The Rule of 55 and IRS Rule 72(t) SEPP: Two Paths to Penalty-Free Early Withdrawals Many people approach retirement — or early retirement — with the mistaken belief that age 59½ stands as an impassable gate between them and their tax-advantaged accounts. Touch that money before the…
Once a year, the IRS tells retirees with traditional IRAs and 401(k)s the smallest amount they must withdraw. A surprising number of them hear it as the largest amount they are allowed to spend. Unfortunately, some do not hear anything. A recent Vanguard survey of retirement account holders found that 44 percent of those who…
Social Security is an annuity. Claiming it is the decision most people make by accident. Strip away the politics and the paperwork, and Social Security is a simple thing wearing a complicated costume. It is a lifetime annuity. You pay in during your working years, and in return you get a monthly check that keeps…