Retire with rollover into IRA and not a 72t

L1: Retire with rollover into IRA and not a 72tBeing almost 58 when I retire and wife same age wouldn”t I be foolish to start a SEPP for less than two years until 59 1/2. Does anyone know about somethin that has come up about a Solo 401K that an individual can get into. The company 401K I”m in now on retirement is either leave it in as a single life annuity or roll it over into IRA. I”m looking for another possible source other than a 72t. Two years back we could leave it in the company 401K and draw out like we wanted too if we retired after 55.Where does a person write the IRS and ask for exception. I worked 2 years longer than I wanted too because of the bear market and now the new 72t is going to penalize me for staying at work longer. Please advise on my best alternative. This is a wonderful site. Thanks GFW………………………John2002-12-13 15:15, By: John, IP: [127.0.0.1]
L2: Retire with rollover into IRA and not a 72t
Unfortunately, your are kind of between a “rock and a hard place”.
First a “solo 401(k)” also referred to as an “individual(k)” is a place for a business owner with no employees (other than his/her spouse) to save for retirement. It has a contribution limit of 100% of income up to $40,000 – unfortunately, the tax-deductible portion is only 25% of compensation. So unless you are looking to save for retirement and have a business that generates income and the are no employees, this plan is not for you.
At your age, I would probably use 72t only as a last resort, or if based on the account balance, it provided the income that I desired. With only two years to go, you have to be sure, because the SEPP plan will have to last a minimum of five years (check our last payment date calculator).
Consider other sources of funds. Do you have sufficient other assets to make it through the next two years? Can you borrow what is needed for the next two years? Can there be a combination of all?
I guess what I”m trying to say is that it may not be an all or nothing situation. Take a closer look and good luck!
2002-12-13 15:50, By: Gfw, IP: [127.0.0.1]