Earning from Fixed Income Funds

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L1: Earning from Fixed Income FundsIn response to a question at a recent seminar, a financial planner told the audience that you could withdraw earnings made from Fixed Income mutual funds contained in your IRA prior to age 59 _. Income taxes would have to be paid but no 10% penalty would apply. This allows an investor to take money out of his/her IRA without applying for a SEPP (72t) distribution.I thought that only a SEPP (72t) distribution is exempt from the 10% penalty prior to age 59 1/2. If anybody has familiarity with this strategy, would you please confirm or invalidate this advice? It would help me greatly in my retirement planning. 2002-04-26 16:42, By: Pots, IP: [127.0.0.1]
L2: Earning from Fixed Income FundsThere are certain exceptions to the 10% penalty tax – however, interest on fixed income investments isn’t an exception. Questions…Was this “financial planner” selling fixed income investments?Did he/she quote any code sections, PLRs, etc?Did he/she leave anything in writing?To give the “financial planner” the benefit of the doubt, maybe his/her presentation was just misunderstood. 2002-04-26 17:02, By: Gfw, IP: [127.0.0.1]