Can a 72(t) Distribution Be Used With an Annuity?
Retire For Less With The Annuity Expert by Shawn Plummer
Episode notes
Do you want to retire early and access your retirement funds, but you are terrified of the IRS hitting you with a 10% early withdrawal penalty because you are under age 59 ½?
In this video, Shawn Plummer from The Annuity Expert explains exactly how you can use an IRS 72(t) distribution with your annuity to access your money completely penalty-free! Shawn breaks down the exact rules of a 72(t)—explaining why you must take fixed distributions for 5 years or until you hit age 59 ½ (whichever comes later).
He also reveals a brilliant strategy for early retirees: How to take your required 72(t) distributions to cover your immediate living expenses, while simultaneously letting a Guaranteed Lifetime Income Rider grow in the background. Once your 72(t) obligation is finished, you can flip the switch on your income rider for a massive, perman ...