Author Topic: How do I withdraw early from 401k and/or IRA without penalty?  (Read 1457 times)

BrianT

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How do I withdraw early from 401k and/or IRA without penalty?
« on: October 03, 2014, 12:11:06 PM »
My 401k and Rollover IRA have been working well for me, and I'm counting on withdrawing from it as part of early retirement. Right now I am 32 years old, and from my rough calculations, I should be able to retire early at 45 - through a combination of stock/index funds and paid off rental properties.

Can someone help me with how the process works to withdraw early from retirement accounts without incurring the early withdrawal penalty? I know it involves a waiting period and transfer into a Roth. Any help with articles or comments would be MUCH APPRECIATED!!!


dandarc

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Re: How do I withdraw early from 401k and/or IRA without penalty?
« Reply #1 on: October 03, 2014, 12:13:30 PM »
Search "Substantially Equal Periodic Payments" and "Roth Pipeline" - these are two ways to get at traditional 401K money early and avoid the penalty.  The approach you asked about specifically is the Roth Pipeline.


BrianT

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Re: How do I withdraw early from 401k and/or IRA without penalty?
« Reply #3 on: October 03, 2014, 12:30:43 PM »
Thank you! This is exactly what I needed. Reading this stuff is making me all giddy inside.

boulder3381

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Re: How do I withdraw early from 401k and/or IRA without penalty?
« Reply #4 on: April 17, 2015, 10:03:26 AM »

http://jlcollinsnh.com/2013/12/05/stocks-part-xx-early-retirement-withdrawal-strategies-and-roth-conversion-ladders-from-a-mad-fientist/


This article was incredibly helpful and addressed the questions I've been holding about FIRE and investing in tax shelter accounts.