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george_gs
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| what is 72(t) ? |
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adonis
Joined: 22 Oct 2005
Posts: 3777
Location: ALASKA
109.26 Dollars($)
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Welcome george_gs,
The IRS has a rule known as 72(t) according to which a person contributing to 401k plan account can withdraw cash prior to the age of 59 and 1/2 years without having to pay the 10% penalty.
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Procrastination is the enemy of your financial sucess |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.44 Dollars($)
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Hi George,
Welcome to the forum.
72(t) distribution is a rule of IRS that eliminates 10% penalty even if you withdraw money early from your 401k, 403(b) plan prior to age 59/12.
Hope this helps you.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.81 Dollars($)
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Hi,
Welcome to Mortgagefit discussion board.
72(t) distribution from an IRA rollover account is one of the ways through which you can save yourself from the penalties if you wish to take early retirement and also want to get benefits from your 401(k) plan account.
Say you want quit your work early. Then you need to roll your 401(k) into IRA. After that you can apply for 72(t) distribution. The rule is after the completion of the rollover and setting up the 72(t) you must continue it until the age of 591/2 or minimum of 5 years whichever comes last.
Do let me know if you have any other questions.
Thanks
Blue |
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dan34
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| hello larry, is it 72(t) or 73(t)? pls clarify. |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.44 Dollars($)
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Hi Dan,
I am talking about 72(t) distribution plan not about 73 (t)  |
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Duane
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Post subject: 401k |
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| Is The money I contribute to my 401k secure. In other words my contributions are basically in a saving account (I've opted not to invest it so I get minimum return). Are there anyway possible reasons that money wont be there when I retire? |
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Ryan
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| As far as I know, the 401k money is usually secure. |
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joyce
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Post subject: amount |
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| i am 65 if i am working in a new company can i contribute to a new 401k, and what happens after 70 can i still contribute - and at 70 how much do i have to withdraw from my old 401k |
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smithsussane
Joined: 18 Sep 2008
Posts: 3627
Location: Alaska
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Hi Joyce!
Welcome to Forums!
If your new company offers you a 401k plan, then you can contribute to that plan. You must begin making distributions from your old account after you turn 72. If you are still employed at the company sponsoring the 401(k) plan, then you do not need distributions. The amount of distributions will depend upon life expectancy according to the relevant factors of the correct IRS tables.
Feel free to ask if you have further queries.
Sussane |
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jaguar
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Post subject: debt free |
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| I am 59 1/2 and would like to withdraw from my 401k to become debt free... |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1754
Location: MICHIGAN
260.24 Dollars($)
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Hi jaguar,
As far as I know, the rules for withdrawing money from your 401k account states that you will have to be 59 1/2 years old to withdraw money from this account without penalty. As you have mentioned that you are 59 1/2 years old, I think you will be able to withdraw the money.
Thanks,
Jerry |
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jaguar 10
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Post subject: 59 1/2 withdrawal from 401k to payoff credit card debt |
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| I am 59 1/2 and would like to make a large withdrawal from my 401k to payoff my high credit card debt. |
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jaguar 10
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Post subject: withdrawal |
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| how financial wise will this be? |
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Niicss
Joined: 03 Oct 2005
Posts: 2579
Location: New Jersey
402.93 Dollars($)
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Hi jaguar
As you are 59 and 1/2 years of age, you will face no issues in withdrawing from 401(k). Withdrawing from 401k is not a bad idea. But as you want to pay off credit card debts, you can even try for a debt consolidation or a debt settlement. In case of a debt settlement, your outstanding balance will be reduced by 40%-60%. In case of debt consolidation, the interest rates may be reduced. I know of a debt consolidation community - "debtconsolidationcare.com". You can visit their website and speak to their financial coach. Let's hope they will be able to help you.
Thanks.
_________________
Good is the Enemy of Great. |
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