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72t interest

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Byteresa

L1: 72t interestDoes the interest paymenthave to be more than the 72t payout on the calculator.2007-07-25 14:05, By: teresa, IP: [71.228.234.92]
L2: 72t interestTeresa,
There are no rules concerning what you earn (or lose) in a year vs. what is taken out on a 72(t) plan or on regular IRA withdrawals. The advantage to earning more money than you are taking out is that your principle is not being reduced. KEN2007-07-26 04:34, By: Ken, IP: [75.67.65.254]

L2: 72t interestKen is exactly right. If you can invest your SEPP plan money in such a way that its annual growth exceeds your calculated withdrawals, then your account is not only not being depleted but is actually growing larger with time. This is an outstanding thing to have happen and gives the retiree a lot of confidence in their financial future. Once the SEPP plan ends, after age 59.5 or 5 years, whichever is longer, then additional money can be withdrawn from our bulging accounts for those special treats most of us have in mind.
Ed2007-07-26 21:41, By: Ed_B, IP: [67.170.159.37]

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