According to an obscure section of the tax code known as Internal Revenue Service Rule 72(t) 2(A) iv—generally referred to as “72T”—you don’t have to pay the penalty if you take your money in what the IRS defines as “substantially equal and periodic payments that are based on life-expectancy tables.” In plain language, the IRS allows you to take a fixed amount of money out of your IRA early without penalty provided you work out a withdrawal schedule in advance and then stick to it. This is an extremely complicated undertaking that you shouldn’t attempt without professional guidance. Done
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