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Greetings, Uniquename, and welcome.

<<I'm planning on an early retirement at 55 in about 20 years. With a regular IRA, I could start deductions before 59 1/2 as long as they are substantial and equal. I believe the Roth IRA taxes deductions taken before 59 1/2. Is this true for early retirees also or is there a loophole similar to the regular IRA?>>

I think you mean you can start taking withdrawals prior to age 59 ½, not deductions. The substantial and equal payments from a traditional IRA only allow you to escape the early withdrawal penalty of 10%, not taxes. In the Roth, you may take contributions at any time without worry of taxes or penalty. It's the earnings you can't withdraw prior to 59 ½. If you do, you'll be taxed and penalized. The substantial and equal withdrawals will apply to Roth earnings taken prior to age 59 ½ as well, assuming you need them because you've already withdrawn all your contributions. If that happens, though, you probably shouldn't be retired because you don't have enough money to live on anyway.


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