Description
Sometimes there are situations where individuals need access to funds in their tax-deferred retirement accounts sooner than the rules allow. In fact, except for a narrow range of ‘emergency’ situations, the only way most individuals can access these funds without incurring a 10% early withdrawal penalty tax is by setting up “Substantially Equal Periodic Payments (SEPP)”, otherwise known as 72(t) payments. To do so, however, taxpayers must adhere to several rules that have been provided by the IRS or risk paying significant penalties. Join us at the August Kitces Monthly webinar where expert guest, Jeffrey Levine, will discuss the rules to consider and strategies to apply when helping clients who may need early access to their retirement funds.
Learning Objectives
- Identify which critical 72(t) payment rules must be considered to avoid penalties
- Identify how to navigate IRS Notice 2022-6, which sets a new 5% ‘floor’ interest rate for calculating 72(t) payments
- Understand the special planning considerations that come up in situations of divorce or multiple accounts
- Understand the special planning considerations that come up with layering exceptions, reporting, and Roth conversions.
- Learn how to apply 72(t) strategies to a variety of client goals