If you are planning to retire early, we should examine early retirement withdrawal sources and rethink conventional retirement planning wisdom.
We see mistakes being made every day as it relates to early retirement and separation from service rules. Separation from service 401k withdrawal can be tricky and DOES come with its issues.
When you make a separation from service distribution at or after age 55 you do get to avoid the 10% early withdrawal penalty, but the request needs top be made the correct way. You will also need to factor in some kind of safe withdrawal rate on your money, or build your own private pension.
With tax rates at/near the lowest top marginal rates since the 20’s now it is more important than ever to build up after tax funds for early retirement withdrawal and access.
Need help with early retirement planning? Let us help!