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Hi,

I'm not active on this board, so if this topic has been discussed, would you please offer a post number.

I'm looking for someone with experience in early IRA withdraw using the following exception:

"You can avoid the 10% early withdrawal penalty by taking funds from your 401k (or any qualified pension plan) in equal installments over a certain period of time. Specifically, the law says that if the distrubtion is part of a scheduled series of substantially equal periodic payments made over the life expectancy of the participant and the beneficiary, the 10% penalty will be eliminated. However, once this annuity form of payment is elected, it cannot be switched until five years have elapsed or until age 59 1/2- whichever is longer."

I have questions about the process and about the amount of tax that i would pay on the withdrawal. My husband is 41, and I'd be 40, and I need to make sure I'm understanding the life exp. table. Say we took $200,000 every year out of the IRA, we would pay whatever the tax is that year, just like that was regular income? Once we have claimed this process, can we still work full-time? Thank you for your time.
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