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My wife and I plan to implement a 72t withdrawal from our 401ks. We are 45 and 44 years young. The 401ks are substantial and the 72t will allow us a good living. My question is are there any advantages to using the 72t rule and rolling over the 401ks to an IRA or several IRA's VS just withdrawing the funds (72t) from the 401k? Since the 72t withdrawals will be our primary source of income from here on out I am looking at taking as much out of the 401k as we can under the 72t annuity plan and reinvesting any excess so the growth will be taxed as only capital gains (20%) vs income (30+% bracket) if we left the excess in the 401k.
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