Such an important post! We were a dual-income household in high-cost, high-tax NYC for the first 25 years of our career so never qualified for a Roth. We maxed out our tax-advantaged retirement plans b/c the tax burden in NYC is so high. Now that we have the means on paper to FIRE, we would face a penalty to withdraw any of those funds. We’re using a mix of non-retirement plan assets and part-time consulting to bridge us till we’re penalty-free. We also have a solo 401k, and we can borrow from that. In the beginning of our careers, we didn’t think about FIRE and so didn’t even think we’d need our retirement monies till 59+ or even older. Still, we were glad to get the tax breaks when we really needed them.
We maxed out our tax-advantaged retirement plans b/c the tax burden in NYC is so high.
Whew yeah, in high-tax states those accounts are the most useful for sure. Starting my career in Florida that wasn’t something I thought much about, but it makes sense.
Borrowing from 401k’s is another big one for sure. I haven’t researched that one yet myself, but I’ll have to look into it. The Cares Act has a provision for borrowing w/the ability to defer which year you pay taxes too, which is handy.
Investing online has been a main source of income, that’s why knowledge plays a very important role in humanity, you don’t need to over work yourself for money.All you need is the right information, and you could build your own wealth from the comfort of your home! Binary trading is dependent on timely signals, assets or controlled strategies which when mastered increases chance of winning up to 90%-100% with trading. It’s possible to earn $10,000 to $20,000 trading weekly-monthly in cryptocurrency(bitcoin) investment, just get in contact with Mr Bernie Doran my broker. I had almost given up on everything about binary trading and never getting my lost funds back, till i met with him, with his help and guidance now i have my lost funds back to my bank account, gained more profit and I can now trade successfully with his profitable strategies and signals! Reach out to him on Gmail ( [email protected] ) , or his WhatsApp : +1(424)285-0682 for inquiries
Great summary article Adam! I will be using this as a reference point, especially when discussing with those new to the concepts.
One potential method I am looking into is the 72t method, but splitting my full IRA balance amongst different custodians to better customize how much I want to withdraw each year. There is a short statement about it in the FAQs of the article you referenced, but nothing substantial. The idea would be in your example where you have $1,000,000 in an IRA, maybe you send $300k to a different custodian and start 72t distributions, if you find you need more money in a later year, you send $100k to a different custodian and start 72t distributions there, and so on. After 5 years you have the option to stop on the first one and can continue to adjust.
I’d completely forgotten about that situation with multiple custodians, but it sounds like a great idea. That allows you to start low and increase your withdrawals as you realize you need more, while ideally preventing yourself from taking out too much. Sounds like a solid plan for sure.
Recording success in Cryptocurrency, Bitcoin is not just buying and holding till when bitcoin sky-rocks, this has been longed abolished by intelligent traders ,mostly now that bitcoin bull is still controlling the market after successfully defended the $60,000 support level once again and this is likely to trigger a possible move towards $100,000 resistance area However , it’s is best advice you find a working strategy by hub/daily signals that works well in other to accumulate and grow a very strong portfolio ahead. I have been trading with Mr Bernie doran daily signals and strategy, on his platform, and his guidance makes trading less stressful and more profit despite the recent fluctuations. I was able to easily increase my portfolio in just 3weeks of trading with his daily signals, growing my $3500 to $65,000. Mr Bernie’s daily signals are very accurate and yields a great positive return on investment. I really enjoy trading with him and I’m still trading with him, He is available to give assistance to anyone who love crypto trading and beginners in bitcoin investment ,he can also help you recover your lost funds I would suggest you contact him on WhatsApp : + 1424(285)-0682 , Gmail : ([email protected]) or Telegram : @IEBINARYFX for inquiries
How does the Roth IRA ladder work if you only have a ROTH IRA and therefore don’t need to convert any money from a tIRA to a roth IRA? Meaning, can you take money out of a ROTH IRA earlier than 59.5 years old?
On the bright side you can still remove money from a Roth IRA – but only your contributions. I haven’t found a way to withdrawal gains from a Roth (beyond the ones listed here). If I find anymore options I’ll update this post though!
Caroline at Costa Rica FIRE
June 30, 2020
Such an important post! We were a dual-income household in high-cost, high-tax NYC for the first 25 years of our career so never qualified for a Roth. We maxed out our tax-advantaged retirement plans b/c the tax burden in NYC is so high. Now that we have the means on paper to FIRE, we would face a penalty to withdraw any of those funds. We’re using a mix of non-retirement plan assets and part-time consulting to bridge us till we’re penalty-free. We also have a solo 401k, and we can borrow from that. In the beginning of our careers, we didn’t think about FIRE and so didn’t even think we’d need our retirement monies till 59+ or even older. Still, we were glad to get the tax breaks when we really needed them.
Adam
July 1, 2020
Whew yeah, in high-tax states those accounts are the most useful for sure. Starting my career in Florida that wasn’t something I thought much about, but it makes sense.
Borrowing from 401k’s is another big one for sure. I haven’t researched that one yet myself, but I’ll have to look into it. The Cares Act has a provision for borrowing w/the ability to defer which year you pay taxes too, which is handy.
allendave
August 6, 2024
Investing online has been a main source of income, that’s why knowledge plays a very important role in humanity, you don’t need to over work yourself for money.All you need is the right information, and you could build your own wealth from the comfort of your home! Binary trading is dependent on timely signals, assets or controlled strategies which when mastered increases chance of winning up to 90%-100% with trading. It’s possible to earn $10,000 to $20,000 trading weekly-monthly in cryptocurrency(bitcoin) investment, just get in contact with Mr Bernie Doran my broker. I had almost given up on everything about binary trading and never getting my lost funds back, till i met with him, with his help and guidance now i have my lost funds back to my bank account, gained more profit and I can now trade successfully with his profitable strategies and signals! Reach out to him on Gmail ( [email protected] ) , or his WhatsApp : +1(424)285-0682 for inquiries
Casey
July 1, 2020
Great summary article Adam! I will be using this as a reference point, especially when discussing with those new to the concepts.
One potential method I am looking into is the 72t method, but splitting my full IRA balance amongst different custodians to better customize how much I want to withdraw each year. There is a short statement about it in the FAQs of the article you referenced, but nothing substantial. The idea would be in your example where you have $1,000,000 in an IRA, maybe you send $300k to a different custodian and start 72t distributions, if you find you need more money in a later year, you send $100k to a different custodian and start 72t distributions there, and so on. After 5 years you have the option to stop on the first one and can continue to adjust.
Adam
July 1, 2020
Thanks Casey!
I’d completely forgotten about that situation with multiple custodians, but it sounds like a great idea. That allows you to start low and increase your withdrawals as you realize you need more, while ideally preventing yourself from taking out too much. Sounds like a solid plan for sure.
Melissa
August 6, 2024
Recording success in Cryptocurrency, Bitcoin is not just buying and holding till when bitcoin sky-rocks, this has been longed abolished by intelligent traders ,mostly now that bitcoin bull is still controlling the market after successfully defended the $60,000 support level once again and this is likely to trigger a possible move towards $100,000 resistance area However , it’s is best advice you find a working strategy by hub/daily signals that works well in other to accumulate and grow a very strong portfolio ahead. I have been trading with Mr Bernie doran daily signals and strategy, on his platform, and his guidance makes trading less stressful and more profit despite the recent fluctuations. I was able to easily increase my portfolio in just 3weeks of trading with his daily signals, growing my $3500 to $65,000. Mr Bernie’s daily signals are very accurate and yields a great positive return on investment. I really enjoy trading with him and I’m still trading with him, He is available to give assistance to anyone who love crypto trading and beginners in bitcoin investment ,he can also help you recover your lost funds I would suggest you contact him on WhatsApp : + 1424(285)-0682 , Gmail : ([email protected]) or Telegram : @IEBINARYFX for inquiries
Emmie
July 3, 2020
Great read, thank you. These are important to consider, especially now. Great Article!
uttama
July 5, 2020
Adam,
How does the Roth IRA ladder work if you only have a ROTH IRA and therefore don’t need to convert any money from a tIRA to a roth IRA? Meaning, can you take money out of a ROTH IRA earlier than 59.5 years old?
thanks!
uttama
Adam
July 10, 2020
On the bright side you can still remove money from a Roth IRA – but only your contributions. I haven’t found a way to withdrawal gains from a Roth (beyond the ones listed here). If I find anymore options I’ll update this post though!
Liz
July 22, 2020
Amazing summary of so much information in 1 place. I bookmarked it to come back and do a deeper read.
Adam
July 27, 2020
Thanks Liz!