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question about 72T

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Last Updated On
ByMerk

L1: question about 72TI have been researching the web for information about 72t early distributions. I am needing a monthly income of $1500. Have $360,000 to work with at the age og 49.
Is the 72t the best solution, orare there other ways to work with these funds and byp****the 59 1/2 penalty?
2004-03-30 12:10, By: Merk, IP: [12.154.106.5]

L2: question about 72TGood afternoon, Merk:
Well, you can quit searching the web for 72(t) information because you have just found the site with the best information and tools to set up a SEPP. I also suggest that you buy ($40 … cheap!) Bill Stecker’s reference book on the subject. Simply go to the home page and use the second big blue button to order.
72(t) & SEPPis THE way to avoid the early distribution penalty before 59 1/2.
After you learn the ins & outs of SEPP, unless you have a lot of experience with the investment part of the process, may I suggest that you seek a competent Financial Advisor … preferably one that is or works for a Registered Investment Advisor firm … to help you put this part of the plan together. I would avoid anyone who only has one solution like fixed annuities and callable CDs. The advisor should have the ability to provide you with a full aray of investment options. With $360k you coulduse the services of a professionalMoney Managementfirm. Many independent advisors can get you the access that normally takes five to 25 million for one asset cl****manager.
Don’t forget to leave yourself a ‘safety outlet’ by having some funds in an IRA that’s not tied to SEPP.
Good luck.
Jim2004-03-30 13:33, By: Jim, IP: [68.1.147.61]

L2: question about 72THello Merk:
Certainly using 72(t)(2)(A)(iv); e.g. 72t distributions will provide in the $18,000 to $20,000 range of penalty free distributions. Further, this represents a 6% withdrawal rate which should be sustainable for more than 10 years.
TheBadger
wjstecker@wispertel.net
2004-03-30 15:37, By: TheBadger, IP: [38.116.134.130]

L2: question about 72TBased on Age 49 and the current interest rate of 4.23%, a distribution of $18,000/year would only requireabout $327,000 – balance could be divided out for emergencies.
2004-03-30 15:44, By: Gfw, IP: [172.16.1.74]

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