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72 tCalculator
Retirement Calculator, Inc.
Will a 72t Calculator Help Make Sense of Retiring Early?
When it comes to planning for your retirement, you are likely to find that there are some great benefits to savings and investment plans that allow you to defer paying taxes on your income. Your 401k plan, your 403b and 457 plans: all of these allow you to defer paying taxes until you withdraw the money - however, there are stiff penalties if you find yourself needing to access that money before the government thinks you should (when you are 59 1/2 years of age or older), a penalty of 10% or the amount that you withdraw.
A 72t is an exception that lets you distribute the funds from your retirement accounts so that you can retire early, say at 55 instead of 59 1/2 years of age. With a 72t calculator, you will be able to figure out how your retirement income would be affected, depending upon whether you were to elect to take the required minimum distribution, or to withdraw using the fixed amortization method or the fixed annuitization method. With factors like your age, your beneficiaries age and other details, a 72t calculator will let you determine the substantially equal periodic payments that will let you avoid the early withdrawal penalty.
But before you get caught up using a 72t calculator, you may want to take a better look at the big picture of your retirement income to see whether or not it's the right plan for you. There may be other changes that you could make with your investment strategies and savings like certificates of deposit that would allow you to have access to the income that you need when you retire early without having to deal with the complexities and confusion of implementing a 72t.
The retirement calculator that you can download on this page will allow you to take a closer look at your retirement savings and the changes that you can make to it that may put you into a better position both now and over the long term. With it, you will be able to take a closer look at each of the stocks that you have invested in to determine whether or not there are changes that you could make to you investment strategy that would keep you from having to borrow against your 401k, 403b or 457 account.
Similarly, you will be able to look at mutual funds, and various savings accounts that you have that are not tied directly into your retirement savings that can be used to give you the income that you need. And, because figuring out the best option is a complicated process, when you download the retirement calculator, your contact information will be forwarded to a financial advisor in your area who will follow up with you.
You will be able to get the answers that you need - about 72t calculator results and about other investment changes. You'll be able to ask questions about the 72t distributions and get a sense of the best way to use the savings and investments that are available to you. The advice that you receive from the 72t calculator can do more than just help you to make the right choice, it can also prevent you from making a costly mistake.
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