There is an exception to the 10% penalty on withdrawals from an IRA before age 59 1/2. It's called Substantially Equal Periodic Payments (SEPP) and it is in Code Section 72(t).Basicially, if you start withdrawing based on a life expectancy formula you can take the money out as taxable, but without tax penalty. The negatives are:-1- You have a one-time choice on the formula used-2- You have to take distributions for the longer of 5 years or until you are 59 1/2. If you deviate from this, the penalties are even heavier than the 10% penalty.GOOD LUCK. WE'RE ALL ENVIOUS
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. M