357: [Rob Townend] Required Minimum Distributions Code 72T 72Q

In this episode, Rob Townend dives into the IRS tax codes 72(t) and 72(q) , which allow you to withdraw from retirement accounts before age 59 ½ without the 10% early withdrawal penalty. We discuss the importance of financial strategies to avoid outliving your money and how to use Substantially Equal Periodic Payments (SEPP) to fund an early retirement.

Rob Townend is a CPA who specializes in helping people access their 401(k), IRA, or other deferred retirement plans early, before age 59 1/2, penalty-free. Rob founded Early Retirement Access, a firm that helps hundreds of clients fund their early retirement with a 72(t) SEPP plan for a low flat fee.

More about Rob Key Discussion Points The Reality of Retirement : Why some retirees are returning to work (like the Costco sample lady at 80) and how to avoid that path. What is IRS Code 72(t)? : An explanation of how to access your IRA or 401(k) penalty-free using SEPP.

The 5329 Form : The specific IRS form needed to report additional taxes or claim exceptions for early distributions. 72(t) vs. 72(q) : Understanding the difference between retirement accounts and non-qualified annuity contracts. Mandatory Distributions : Why your bank (Fidelity, Merrill Lynch, etc.) might not tell you about these options and how to ask for them.

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Episode 357