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L1: 401k1 )im in ct and 46years old can i take out my 401k penalty free? 2)also can i start a 72 t with that money?3)350,000 is traditional 401k and 50,000 is roth 401k.i have roth iras any help?2011-02-25 23:36, By: wade, IP: []
L2: 401kBased on a very short question, a very short answer… NOMy answer was based on your question before you added point #2 and later. I think I will have to change the forum to take away editing privilages after a reply has been made. You added… 2) also can i start a 72 t with that money? 3)350,000 is traditional 401k and 50,000 is roth 401k.i have roth iras any help? 2011-02-25 23:58, By: Gfw, IP: []

L3: 401khelp2011-02-26 00:01, By: wade, IP: []

L4: 401kAge 46 is very early to lock in a 13 year program since there is almost no way to accurately estimate your spending needs that far in advance. You would almost certainly end up busting the plan and owing retroactive penalty and interest.With that warning, you could certainly start a 72t plan. First you would do a direct rollover of the pre tax account to a TIRA and the Roth account to a Roth IRA. That would avoid tax and penalty on the rollover. If you wanted or needed to use the combined balance to calculate your annual distribution, you could. You could then choose how much to distribute from the TIRA and the Roth IRA depending on your tax goals. TIRA distributions would be fully or mostly taxable and Roth distributions would start out tax free and would only become taxable when you reached the earnings in the account.But the main problem is that you would probably bust the plan sooner or later, not to mention that your retirement accounts would be reduced the longer the plan was in place.2011-02-26 00:14, By: Alan S., IP: []

L5: 401kWade,I’m in a similar situation as you. I’ll be 51 this year, and would like to supplement my pension with a 72T. I’ve been reading this forum almost dailyfor over a year now, and feel confident that I can do a 72T when and if I pull theplug.I used the calculator provided on this siteusing the March 120%federal mid-term rate of 2.94%. Your $400k would provide you with $17,880. Unless you have other income this would be difficult to live on. Be advised that these gentlemen on this board are wise, and have observed others mistakes for years. Alan’s caution that 13 years is a long time to not make a mistake should be taken seriously.My hat’s off to GFW, Alan, Jim, Dlzallestaxes, and all others who provide great input to this site. Your different personalities make it great readingand enjoyable. Thank you!2011-02-26 22:56, By: MrWillys, IP: []