Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: lucinda1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19222  
Subject: Early IRA Distributions W/O Penalty? Date: 3/20/2000 7:31 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Took early retirement package at age 54 and will need to begin distributions from our IRA Rollovers (Pension Savings & Lump Sum) before reaching age 59 1/2. A Financial Advisor says the IRS allows such a distribution and it's called something like, "Substantial Equal Distributions." It allows equal distributions for a period of 5 years no matter if the person reaches age 59 1/2 or not during the five year period. Is this advice accurate? Is there anyone out there already doing this? Please advise me. Thanks, Lucinda1
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3007 of 19222
Subject: Re: Early IRA Distributions W/O Penalty? Date: 3/20/2000 7:50 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Lucinda1, and welcome. You asked:

<<Took early retirement package at age 54 and will need to begin distributions from our IRA Rollovers (Pension Savings & Lump Sum) before reaching age 59 1/2. A Financial Advisor says the IRS allows such a distribution and it's called something like, "Substantial Equal Distributions." It allows equal distributions for a period of 5 years no matter if the person reaches age 59 1/2 or not during the five year period. Is this advice accurate? Is there anyone out there already doing this? >>

Yes, such a procedure exits. You will find an overview of the methods allowed in my article "Getting the Money Early" at http://www.fool.com/retirement/manageretirement/manageretirement9.htm. You may also want to read additional material and play with the calculator set up by Intercst, a frequent poster on these boards, at his website "The Retire Early Homepage" at http://www.geocities.com/WallStreet/8257/wdraw59.html. You can also look over some of the hundreds of posts on this issue on the Retire Early message board at http://boards.fool.com/Messages.asp?id=1380025000492017&sort=postdate.

Regards..Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: Peppy9 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3022 of 19222
Subject: Re: Early IRA Distributions W/O Penalty? Date: 3/20/2000 7:53 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Lucinda1
I have been investigating this myself, since I plan to utilized the early withdrawal of my IRA. Yes this is very possible. Check out the Fool.com "Managing Your Retirement -- Getting Your Money Early.

Good luck and lets enjoy it while we can.

Peppy9

Print the post Back To Top
Author: lucinda1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3098 of 19222
Subject: Re: Early IRA Distributions W/O Penalty? Date: 3/22/2000 7:22 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
We have had two responses to my question both stating an early withdrawal w/o penalty is possible. My next question is what advice do you give on frequency of those withdrawals. For example, withdraw once per year, quarterly, or monthly? Please advise me. Thanks, Lucinda1

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3108 of 19222
Subject: Re: Early IRA Distributions W/O Penalty? Date: 3/22/2000 10:04 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Lucinda1 asks:

<<We have had two responses to my question both stating an early withdrawal w/o penalty is possible. My next question is what advice do you give on frequency of those withdrawals. For example, withdraw once per year, quarterly, or monthly? Please advise me.>>

That's your choice to make. IMHO and FWIW I would make the withdrawal that costs me the least in transaction fees and allows my money to continue to grow at the greatest "safe" rate until it's needed for expenses.

Regards..Pixy

Print the post Back To Top
Author: pauledst Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3226 of 19222
Subject: Re: Early IRA Distributions W/O Penalty? Date: 3/28/2000 11:58 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
"I would make the withdrawal that costs me the least in transaction fees
and allows my money to continue to grow at the greatest "safe" rate until it's needed for expenses."

Make your best guess. Change it later if you need to. Be aware that you MUST keep the calendar (tax) year amounts "substantially equal".
I've been doing this for three years now. Started with twice a year and switched to four times a year. Talk to your IRA custodian for costs on each transaction. Consider direct bank transfer rather than "a check in the mail" which keeps your funds out of any interest bearing account for at least a week. Be aware that even though your fund will do a direct transfer which is essentially instantaneous they may debit your account several days ahead of the actual transfer. (read Schwab)

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement