Sentences with phrase «withdraw equal payments»

The rules state that you must withdraw equal payments for a minimum of five years or until you reach 59 1/2, whichever comes later.

Not exact matches

- If you retire early, you can take what the IRS mellifluously calls «substantially equal periodic payments,» or, even more memorably, a «72 (t) election,» and start withdrawing from a 401 (k) or IRA with no penalty, as long as you continue doing so indefinitely.

However, under an RRSP meltdown strategy, you would offset the additional tax by taking out an investment loan and making the interest payments from funds you withdraw from your RRSP (the withdrawals must be equal to the interest payment).

Substantially equal periodic payments (google it) let you withdraw early, but you are locked into continued withdrawls for 5 years.

The Required Minimum Distribution method for calculating your Series of Substantially Equal Periodic Payments (under § 72 (t)(2)(A)(iv)-RRB- calculates the specific amount that you must withdraw from your IRA, 401k, or other retirement plan each year, based upon your account balance at the end of the previous year.

To make a long story short, all the IRS requires is that you start making withdrawals using «substantially equal periodic payments over your life expectancy;» and thus are not withdrawing «too much,» nor too little; and are always paying taxes on this income annually.

Even though the IRS will allow most ways of withdrawing «substantially equal periodic payments,» they publish three set formulas as guidelines.