Can multiple retirement savings accounts and vehicles
be used for a 72(t) distribution?
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A word of caution about 72t distribution penalties
DO IT RIGHT AND IT WORKS BEAUTIFULLY. Do it wrong by withdrawing too much and you can end up broke! PLUS, the IRS may assess the 10% penalty on all amounts withdrawn if the IRA account runs out of money before the end of the 72(t) scheduled time frame. That’s the rule. Therefore, it’s imperative you work with a firm who knows what they are doing! CD’s can not be used effectively as an investment vehicle for a 72(t) distribution.
Experience, Knowledge and Wisdom Do Matter
Not all Financial Advisors, CPA’s, Tax Attorneys, Banks or Brokers know about this little known 72(t) IRS rule. Also, NOT ALL companies know how to structure a 72(t), or how to set it up properly, or even have the mechanical or electronic means available to do such distributions!
Very few fixed annuities will work (but some may) because most Fixed and Indexed Annuities do not allow withdrawals during the first year of the contract. Also, most IRA owners want to withdraw more than the growth generated by most Fixed and Indexed Annuities.
We can provide you examples of the few that will work effectively. Just ask and we can provide that information to you.
We have effectively set-up 72t’s for income withdrawals prior to age 59 1/2 MANY TIMES throughout almost 50 years and it works perfectly, if done correctly. It is completely legal and ANYONE (at any age) can use a 72(t). Many companies and many advisors, simply do not know HOW to properly structure a 72(t). Work with a firm who is experienced and knowledgeable in this specialized area.
Would you like an ESTIMATE of what YOUR 401k, TSP, 403(b), 457 plan or IRA might produce for an income, using a 72(t) for early withdrawals to eliminate the IRS penalty? Simply provide us: your age, your beneficiaries age, the amount of money in your retirement plan and using the current rates with our 72t calculator, we will prepare an income estimate for you. FREE. No obligation. We mean it. Get a Free Estimate Today!
This early withdrawal provision also works for non-IRA annuities to eliminate the IRS 10% early withdrawal penalty. It’s called a 72(q) for non-qualified annuities and works the same as a 72(t) for IRA’s. Learn How a 72(t) Works or if you Got a Question?
NOTE: Investment return and principal value will fluctuate, and shares/units, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Dollar Cost Averaging does not assure a profit nor does it protect against loss in declining markets. The above reference is NOT an offer to sell a product or service. Neither Spivak Financial Group or Centaurus Financial Inc. offers legal advice. Please consult with a Tax Professional for your personal tax consequences.