4 Ways to Access Money (Penalty-free) For An Early Retirement

(don’t forget to checkout the video too)

The hardest part about retiring early is that all of your retirement assets come with a steep 10% penalty if you try to access them prior to 59–1/2…

So where can you start taking money from that isn’t going to be penalized heavily for violating that rule⁉️

Well here are 4 ways to take money for an early retirement without having big penalties:

✅ The 72t

A 72t is a way to retire early by taking money out of your taxable retirement accounts (IRAs, 401k’s, 403b’s, etc) by committing to a series of payments that last at least 5 years or until 59–1/2 (whichever is longer).

This can be a great option for pulling money out early that not many people know about, however, you have to exercise caution because it can be penalized heavily if you do it wrong. ⚠️

✅ The Age 55 Rule

The Age 55 Rule allows you to pull money out your employer-sponsored retirement plan if you leave your job, or separate from your employer in any way.

This is a great way to start pulling money out of that 401k before 59–1/2 with a bit more flexibility than the 72t…

The only downside is your 401k has to remain with your employer while exercising this option.

✅ Pulling money of your cash-value life insurance insurance contract

This is ALWAYS a great place to pull money from because it can be accessed completely tax-free and penalty-free at any point in time… 👏👏👏

These are a great way to not only shield you from market volatility, but also as added protection against a possible long-term care event down the road.

✅ Lastly, your Roth IRA contributions…

Roth IRA contributions are always accessed on a first-in-first-out basis, so at any point you can pull the money you put into the contract out first without taxes or penalties…🤝

You just can’t access the growth before 59–1/2 (or before the 5-year rule has been satisfied).

Let’s chat 💬😎