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Early Retirement and Roth IRA”s

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Bybj

L1: Early Retirement and Roth IRA”sI’m 25 years old, and have been buying mortgages with my roth for a year or so…and have built it up quite fast. I’m unclear, and it’s difficult to find correct advice with regards to early retirement. Suppose I can get my IRA up to 5 million by the time I’m 30 years old, (a tough goal, I know) and I want to get my money out monthly with a SEPP. It’s my understanding that I can do that, and the monthly income will be tax and penalty free. Is this correct? I’ve been speaking with some attorney’s that I know don’t understand everything with regards to Roth’s and make me feel like I have learned something not true.
Can I retire early and get around the 10% penalty and enjoy my retirement tax free? Or am I subject to the tax, even if I set up a SEPP.
Thanks for the help!
PS. How is Bill Stecker’s book? A pretty good buy? I’m really excited to read it.2004-04-15 20:50, By: BJ, IP: [67.164.207.169]

L2: Early Retirement and Roth IRA””sHello BJ:
You wil find 1/2 of a chapter just on ROTH IRAs & how they operate & inter-relate to SEPP plans.
Short version — you can use a Roth IRA for a SEPP plan, but only to avoid the 10% surtax; not regular tax. All of your contributions will come out first & tax free; then the earnings will be taxed at ordinary rates.
TheBadger (the author)
wjstecker@wispertel.net
2004-04-15 21:17, By: TheBadger, IP: [66.250.23.21]

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