Retirement is causing financial havoc in the country at the moment, with fierce debate over rising retirement ages and controversy over private pension schemes that won’t pay out. As a result, many people are looking to retire early and unlock the value of their IRA, 401k, TSP, 403b or 457 plan. Many find it difficult to unlock their equity before their legal retirement age, but GCBA are shedding light on IRS rule 72t, and how it can help people unlock their equity early and in a variety of ways. Their newly published guide (http://www.gcbaonline.com/retirement/understanding-irs-72t-withdraws-rule-calculator) helps explain how.
The 72t rule allows for money to be withdrawn ahead of time from a retirement account in five SEPPs, or Substantially Equal Periodic Payments over a period of five years, or until the recipient reaches fifty nine and a half years of age. The rule also includes multiple methods of calculating the distribution of funds over such a period (https://docs.google.com/document/d/1SHufjXo4jrh-fEkVG1bK7HfK-HAkBqtGR7eXJa6Igmg/edit).
These methods have advantages and disadvantages which make them an ideal fit for specific circumstances. Minimum Distribution Method enables users to unlock the smallest possible amounts, Amortization allows for fixed annual payments drawing out the largest amounts, where Annuitization allows for users to receive steady yearly pay outs.
A spokesperson for GCBA explained, “We understand that the logic behind this rule and its execution can be difficult to grasp, so we have done our utmost to present the process in easy to read plain English and describe using real examples the direct comparison between the distribution methods in terms of what it will mean for the user and the money they can get access to. We believe rule 72t is an amazing resource for those looking to unlock their wealth, and we also advise on finding the right financial representative to ensure navigating this minefield of red tape is as quick and painless as possible.”
GCBA helps educate consumers on different financial topics. Life changes fast, and finances can, too, which is why GCBA has created a high quality, original resource center dedicated to helping people understand how to change their fortunes, understand options and get familiar with different wealth strategies is the key to long-term success.
Visit http://www.gcbaonline.com/ for more information.
Name: Paul West