OT post - unless you have had MRVC in IRAs since $6.
Tapping IRAs early (before age 59 «) without penalty.
In my situation, successful IRA investing led to a situation where most of my financial assets were locked up. How to get at them early without penalty?
To my surprise, the IRS provides SEVERAL ways to withdraw money without penalty. The way I am looking at is called "Substantially equal" withdrawals over 5 years or until age 59 « (whichever is longer).
There are 4 ways to figure these withdrawals, but they only document two in the publications, making me go to a main library for 1989 bulletins. These four ways are called 1) Term Certain, 2) Refigure life expectancy, 3) Amortization method, 4) Annuity Factor method. Each method results in different withdrawal amounts. In the last two methods, (the ones they don't document in pub 590) the withdrawals are substantially higher.
I won't bore you with all the details, but the bottom line is for others in similar situations, YOU CAN DO IT. In my case, I'm wondering, WHY NOT (seeing a financial advisor real soon).
See IRS Pub 590 Chapter 1, and Internal Revenue Cumulative bulletin 1989-1, notice 89-25 if this interests you. |
