ChooseFI 475 | How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney
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Feb 5, 2024 Tax expert Sean Mullaney joins the show to discuss strategies for accessing retirement funds early, including taxable accounts, inherited retirement accounts, 457B's, roth conversion ladders, and the rule of 55. The discussion explores various options for withdrawing money before age 59.5 without penalties and provides valuable insights into maximizing tax efficiency for early retirees.
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Taxable Accounts First
- Start with taxable brokerage and bank accounts.
- This is the simplest method, requiring no special tactics.
Zero Tax on Capital Gains
- Long-term capital gains can be tax-free under certain conditions.
- If your taxable income (including the gains) falls within the 12% bracket or lower, the rate is 0%.
Roth Conversions
- Consider Roth conversions if you have room in the lower tax brackets.
- This allows you to move money from traditional to Roth, potentially tax-free.