@levelheadedmoney: The Rule 72(t) Trap Rule 72(t) can be a powerful way to access retirement money before age 59½ without the usual 10% early-withdrawal penalty. But there’s a catch. Once you start a 72(t) substantially equal periodic payment (SEPP) plan, you generally must continue it until the later of: ➡️ 5 years from when you started, OR ➡️ Age 59½ And during that period, you need to follow the rules carefully. If you improperly modify the payment schedule, the IRS can potentially assess the 10% additional tax you previously avoided — plus interest. For example: Start at age 50? You may need to continue until 59½. Start at age 58? You may need to continue until about 63 because of the 5-year requirement. That’s why Rule 72(t) isn’t something to jump into just because you want early access to retirement money. It can be a useful strategy — but you need to understand the commitment before you start. 💡 Know More. Decide Better. #retirementplanning #financialfreedom

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Tuesday 11 August 2026 09:09:36 GMT