Hi investment wizards,
As I understand, you can avoid the 10% early withdrawal penalty from IRAs by using SEPP, but the payments are still subject to income tax. If a person plans to use SEPP as part of an early retirement plan, would they want to invest in a traditional, rather than roth, IRA? It seems if you do this with a roth you pay double income tax, once when you make the contributions and again on your SEPP. With a traditional you would only pay income tax on the SEPP. Am I missing something?
Other info about roth vs. traditional IRAs is welcome.