The 72(t) Rule: Making Penalty-Free IRA Withdrawals Before Age 59 ½

Many investors are aware of the rules surrounding penalty-free withdrawals from IRA accounts for certain expenses such as college tuition, a first time home purchase or, in certain circumstances, medical expenses and health insurance. But did you know that it's possible to make penalty-free withdrawals from your IRA before age 59 ½ for retirement too?

 

It's called the 72(t) distribution rule or the "substantially equal periodic payments" provision. It allows investors to make early withdrawals from retirement accounts so long as they keep making withdrawals until they reach age 59 ½ or have been making them for five years, whichever comes later. For example, a 52-year-old would need to make withdrawals until age 59 ½. A 57-year-old would need to make them until age 62.

Click the button below to read the rest of this original article on Seeking Alpha.

ETF Research

We cover ETFs across all sectors, regions and markets. We analyze the portfolios themselves as well as the macro environments that affect them.

Mutual Fund Research

We do mutual fund research too! Although not covered quite as in-depth as the ETF world, we've still profiled many of the big names!

Investing Strategy

Everything from retirement planning to 401(k) investing to options trading strategies and everything in between!

Next Steps...

Got a question? A comment? A fund you want to see profiled? Let us know!

Subscribe to receive the ETF Focus Weekly newsletter absolutely FREE!

* indicates required

Be the first to comment

Leave a Reply

Your email address will not be published.


*