Episode 27 of Retirement Tax Matters examines a couple bridge strategies for retirees in the $2M–$8M range who have a large amount of pre-tax funds but restricted by the age 59 ½ milestone. Garrett Crawford, CFP® and Adam Reed break down Substantially Equal Periodic Payment (SEPP) method and the Rule of 55 for 401(k) plans.(00:00) – Intro(01:45) – Accessing Retirement Funds Before 59½(06:15) – Why the IRS Penalizes Early Withdrawals (08:40) – Strategy 1: SEPP for IRAs Explained(12:20) – The Risks, Formulas, and Strict Rules of SEPPs(16:30) – Partitioning Your IRA(19:10) – Strategy 2: The Rule of 55 for 401(k) Accounts(21:45) – The Danger of Rolling Your 401(k) to an IRA Too Soon(25:00) – The Roth 401(k) Pro-Rata Landmine(28:00) – Our Tax Return-Driven Planning Process & Free ChecklistDownload a FREE Year-End Tax Planning Checklist for HNW Retirees: https://www.retirementtaxmatters.com/checklistRead the full disclosures here: https://www.retirementtaxmatters.com/disclosures
Episode 27 of Retirement Tax Matters examines a couple bridge strategies for retirees in the $2M–$8M range who have a large amount of pre-tax funds but restricted by the age 59 ½ milestone. Garrett Crawford, CFP® and Adam Reed break down Substantially Equal Periodic Payment (SEPP) method and the Rule of 55 for 401(k) plans.
(00:00) – Intro
(01:45) – Accessing Retirement Funds Before 59½
(06:15) – Why the IRS Penalizes Early Withdrawals
(08:40) – Strategy 1: SEPP for IRAs Explained
(12:20) – The Risks, Formulas, and Strict Rules of SEPPs
(16:30) – Partitioning Your IRA
(19:10) – Strategy 2: The Rule of 55 for 401(k) Accounts
(21:45) – The Danger of Rolling Your 401(k) to an IRA Too Soon
(25:00) – The Roth 401(k) Pro-Rata Landmine
(28:00) – Our Tax Return-Driven Planning Process & Free Checklist
Download a FREE Year-End Tax Planning Checklist for HNW Retirees: https://www.retirementtaxmatters.com/checklist
Read the full disclosures here: https://www.retirementtaxmatters.com/disclosures
An educational podcast from financial advisors Garrett Crawford, CFP® and Adam Reed, dedicated to helping retirees between $2M-$8M with tax-return driven financial planning. At this level of wealth an integrated strategy for your tax return, investments, and long-term goals is critical. We explore advanced topics like Roth conversions, RMDs, and charitable giving to help you ensure your family remains your biggest beneficiary.