The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early Liberal Edition

URL:  http://boards.fool.com/if-you-set-up-a-withdrawal-schedule-of-25142237.aspx

Subject:  Re: bridging the gap Date:  2/7/2007  1:57 PM
Author:  ChilkatSally Number:  1101 of 120644


If you set up a withdrawal schedule of Substabtiually Equao Payments (SEP), the penalties go away (but not the daxes).



I would think long and hard before using it. ITs been years since I did the pros and cons, but it is not flexable. The IRS is lurking out there if you should make a mistake. In seven years you can marry , or get a divorce. Your income/expense stream could change a lot. You are locked in. its been a lot of years since I looked at SEP's, maybe things have changed.

Should the market take a big hit, the same year you start withdrawals, you have taken a big chunk of earning life out of your IRA.

Your IRA could double in 7 years, if you make a the right bridge account.

Sally


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us