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Hi- I am 51 years old. I have about $600,000 in 401K savings and about another $600,000 in Retirement that I can get in a lumpsum now if i decide to retire.

If I rollover my lumpsum retirement into an IRA, can I get the interest earned off of the total $1.2 million in IRA savings to finance my retirement. I am aware of the 10% penalty for early withdrawal which ofcourse I want to avoid, but I love the idea of retiring early.

Does the IRS limit how much I can get monthly from my $1.2 milllion IRA to avoid the 10% penalty?? I have read some IRS publications and i have a severe headache.

Should I clean off my golf clubs?


Clean off your golf clubs. You are in luck. Uncle Sam created a loop hole for people just like you, even if it is somewhat limited in scope. I recommend using a good CPA experienced with early retirement practices, or a good fee based CFP to help you through the calculations.

Essentially you can take payments in substantually equal installments for either 5 years or until you reach 59-1/2. There are several methods of making this calculation that have been accepted by the IRS, and some of them give you some wiggle room that can be tailored to give you a wide range of dollars to be withdrawn annually. I don't have the room to go into the details of each of the; that is why I recommended the CPA or CFP.

LOL and practice the short game.

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