Jess,
I’m not attempting to argue but for me there was a way to draw from my IRA before 59 1/2.
When I retired from Ma Bell at 51 y o, I took my company saving plan and lump sum retirement money and put in an managed IRA. A cpa told me there was a way I could draw from that IRA before I was
59 1/2 with no penalty. I told my money mgr about it, and she had never heard about it, but researched it and found out the info was correct. I forget the plan name or number, and I don’t know if that option is still available. Anyway, I made draws from the IRA from the time I retired till turning 59 1/2 (and still drawing). The requirement for making the draw in that time frame was that I had to withdraw the exact amount, to the exact penny, whether it be a monthly, quarterly, or annual. I chose the annual draw just thinking in my pea-brain it would be less chance of someone screwing it up. After age 59 1/2 the amount of draw is flexible.
And at 66 now, I’m still making that same draw.
Ken
Ken,
It's called the 72T rule. You can withdraw funds before 59 1/2 using a couple of rules:
If you stare it you must withdraw the same amount for a minimum of 5 years or until age 59 1/2, whichever is later. So if you start at 57, you must use the 5 year portion. After the limits you treat it just like any other IRA dispersal. It has been of great value to my clients who retire early.
Roger, CPA
