Quote:
Originally Posted by peppy
.... I think if you are going to retire before 59 1/2 you can get the money and not be penalized like a 401k or IRA.
.....
|
I have posted about this before and I don't know why it isn't common knowledge by the "professionals" who advise about such things. The above "fallacy" is often repeated by professionals who SHOULD know better (not you Peppy
). The penalty can be avoided by simply taking "72t distributions" (essentially equal payments each year based upon a formula which sets a maximum amount). Do a search (including the IRS site) if you are interested...TurboTax now has it built in (wasn't always the case), but it simply "flies below the radar" for many folks.