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I want to retire early....maybe in 13 years....I would be 50.

Hypothetically, If my 457 retirement account was 1 million, and I wanted to withdraw early through the 72t, how much would they make me take yearly?
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darrellquock,

Here is the basic IRS info on SEPP:
https://www.irs.gov/retirement-plans/retirement-plans-faqs-r...

Here is a calculator you can try:
https://www.calcxml.com/calculators/72t

These should give you the info you are looking for.

Gene
All holdings and some stats on my profile page
http://my.fool.com/profile/gdett2/info.aspx
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Hypothetically, If my 457 retirement account was 1 million, and I wanted to withdraw early through the 72t, how much would they make me take yearly?

Gene gave you a calculator, but you may not have to use 72(t). What type of 457 do you have? Is it a governmental 457(b)? If so, then there is no penalty on early withdrawals, unless funds were rolled over from another qualified plan. So, assuming your plan allows it, you could take distributions from non-rollover amounts without having to follow 72(t).

Additionally, if you are a public safety employee, you can withdraw beginning at age 50 without paying a penalty. You do need to check your plan's withdrawal requirements to be sure that the withdrawals you want to take are allowed by the plan, as plans are allowed to put some additional withdrawal rules in place.

AJ
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Yes it is a government 457...thanks fir the info. I clearly need to do more research and planning.

The retirement for my pension is a different animal. I can retire at 55 at 2.5 percent or retire at 50 at 2 percent.

Its nice ti know that there may nit be an early withdraw penalty.

Thanks
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I'm a public safety employee with a 457 plan. The provider says once we leave employment, we can tap into the money with no penalties.

Of course, I'll have to pay taxes on it. It's commonly called deferred compensation here.

mazske
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Mazske...
If you roll it over to your own IRA account, I think you would then have to leave it there until 59.5....

Trade offs....either a. You can withdraw from the 457 early but be stuck with limited investment choices or b. roll it over and invest the money in stocks...

Hmmm...what would you do?
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Trade offs....either a. You can withdraw from the 457 early but be stuck with limited investment choices or b. roll it over and invest the money in stocks...

Hmmm...what would you do?


Can you do c. a partial rollover - leaving money that you anticipate needing until you are 59 1/2 in the 457, and rolling the rest over to an IRA?

The limited investment choices probably aren't such a big deal if you're going to be withdrawing the money in the next few years anyway.

AJ
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Additionally, if you are a public safety employee, you can withdraw beginning at age 50 without paying a penalty. You do need to check your plan's withdrawal requirements to be sure that the withdrawals you want to take are allowed by the plan, as plans are allowed to put some additional withdrawal rules in place.

When I retired, the requirement for taking penalty-free withdrawals from a 457 plan was that you aren't working for the same employer that sponsored the plan. No mention of age. (Note: this is VERY DIFFERENT from the then-rules on other sorts of retirement plans.)

I haven't kept up with the laws since then.

Also, at that time, there weren't "457(b)" plans. There were just 457 plans - also "403(b)" plans and, of course, "401(k)" plans. I suspect - but, having (as I said) not kept up with the laws, am not certain - that aj485 is mixing things up.
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Also, at that time, there weren't "457(b)" plans. There were just 457 plans - also "403(b)" plans and, of course, "401(k)" plans. I suspect - but, having (as I said) not kept up with the laws, am not certain - that aj485 is mixing things up.

Nope. Got it right from the IRS. Here's one example: https://www.irs.gov/retirement-plans/irc-457b-deferred-compe...

IRC 457(b) Deferred Compensation Plans

Plans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC Section 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).


AJ
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