475 | How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney
HTML-код
- Опубликовано: 3 фев 2024
- In this episode: taxable accounts, the 72(T), inherited retirement accounts, 457B's, roth conversion ladders, and the rule of 55.
This week we are joined by the “FI Tax Guy” Sean Mullaney to walk through examples and discuss some strategies you could use when accessing your retirement funds early. No matter where you are on your FI journey, there can come a time where retiring early becomes a feasible option, but there can be many stipulations and tax implications that come with withdrawing your funds before the age of retirement. Tune in as we discuss several different options you can pursue in order access your money without having to wait until the 59 and a half year old threshold.
The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual. Brad and the ChooseFI podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services.
Sean Mullaney:
Website: fitaxguy.com Website: Mullaney Financial and Tax Twitter: @SeanMoneyandTax RUclips: @SeanMullaneyVideos
FIRE in Vegas:
Join Brad Barrett from ChooseFI, the Donegans from Rebel Finance School and other FI enthusiasts for a weekend of inspiration, education and fun in Sin City. Timestamps:
0:47 - Introduction 3:39 - Taxable Accounts 19:03 - Inherited Retirement Accounts 25:30 - The Rule of 55 28:39 - 457B's 30:46 - Roth IRA Conversion Ladder 39:12 - The 72(T) 54:52 - Paying the Penalty 57:25 - Conclusion Resources Mentioned In Today’s Episode:
Mailbag: Inflation and FI, ACA Subsidies, Roth vs. Trad and More | Cody Garrett | ChooseFI Ep 471 The Roth IRA Conversion Ladder | A Case Study | ChooseFI Ep 17R Roth IRA Conversion Ladder Case Study | ChooseFI Ep 163R Retire On 72(T) Payments 72(t) Payments in Google Sheets Subscribe to The FI Weekly! More Helpful Links and FI Resources: Top 10 Recommended Travel Rewards Credit Cards Empower: Free Dashboard to Track Your Finances CIT Bank Platinum Savings Account M1 Finance: Commission-Free Investing, 1-click rebalancing CashFreely: Maximize Your Cash Back Rewards Travel Freely: Track all your rewards cards and points Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off) Student Loan Planner: Custom Consult (with $100 Discount)
You are blessing to us 😊 thank you so much for sharing so much knowledge I learned so much from it
Hi Sean! Can’t believe we just got all that information for free, excellent discussion. I can also see sequence of return risk being a downside of 72T. Thank you both!
Absolutely helpful discussion! In the FIRE community, we focus mostly on the accumulation phase, and not as much on how to optimally approach the decumulation phase.
Excellent discussion. You covered the exact strategy that I am using in my retirement. I have dividends and interest income. I do some Roth conversions to keep my MAGI at a level that gets me a very good premium subsidy for ACA medical insurance. My taxable income is close to zero or negative, after itemized deductions.
Great discussion. Does the rule of 55 work for people who own their own business and have a solo401k?
Thank you for your kind words. While I can't say I've thought through all the permutations and combinations, and the IRS (to my knowledge) has never issued any guidance on the issue, I believe it will be quite difficult to use the Rule of 55 for Solo 401(k)s. It requires a "separation from service" from the employer. The Solo 401(k) requires a sponsoring employer to continue to exist to sponsor the Solo 401(k). Thus, it doesn't appear that one's solo business can exist beyond their own retirement to continue to sponsor the Solo 401(k), and thus the Solo 401(k) should be moved to an IRA. Obviously that's not advice for your (or anyone else's) particular situation but rather a brief academic commentary on a less-than-certain issue in the tax world.
Great conversation. I think there was an error at timestamp 18:02. You mention "You qualify for your state's version of MediCare.."
It should be "your state's state version of MEDICAID.."
Totally misspoke there. I meant Medicaid. D’oh!