How to Tap Your IRA or 401(k) Early —NO IRS PENALTY! | Rule 72(t) Explained

Want early access to your 401(k) or IRA before age 59½ without getting slammed by the IRS 10% penalty?

In this episode, I’ll walk you through the IRS Rule 72(t)—a little-known but completely legal loophole that allows penalty-free early withdrawals through SEPP (Substantially Equal Periodic Payments). This strategy could unlock your early retirement plans—but beware, the rules are strict and the risks are serious.

✅ We’ll cover:

• How IRS Rule 72(t) works with IRAs and 401(k)s
• Eligibility requirements and account types
• How long you must commit to fixed withdrawals
• Major risks including sequence-of-returns and tax traps
• When Rule 72(t) makes sense—and when it absolutely doesn’t

If you're aiming for early retirement and don’t qualify for the Rule of 55 or have limited brokerage/Roth options, Rule 72(t) could be your lifeline. But it can also backfire if you’re not careful.

⚠️ Don’t attempt this without consulting a tax pro or retirement planner—this is one of the most complex strategies out there.

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DISCLAIMER: This podcast is for educational purposes only and reflects my personal experience and research. It is not financial, tax, legal, or investment advice. Always consult with qualified professionals before making major retirement or financial decisions. I am not responsible for any loss or damages resulting from reliance on this information.

 

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