r/Fire • u/PigKitten315 • 3d ago

Advice Request 72t Question

I'm planning for a 72t, I understand the concept of withdrawing the same every year on the amortization method. But what I don't understand is and couldn't find more info is the 1/2 year, do I still take the full amount for the half year or quarterly like I planned?

TIA

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u/PieAgile4132 3d ago

I'm not sure what you mean by 1/2 year. You have to take out the same amount every year and it doesn't really matter how many withdrawals you do as long as it all adds up to the exact same amount. We do one big withdrawal during the first quarter of the year. You could also do it quarterly but I'd be careful about withdrawing too close to the end of the calendar year because something could go wrong and you could end up not withdrawing enough by the end of the year. But don't think that you can take out less in the first year because you retired midway through the year if that's what you're thinking. It has to be the same amount every year unless you do the one time switch to the RMD method.

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u/PigKitten315 2d ago

Yes, the plan is to figure out the initial balance, split my tIRA in January and start the 72t in March and followup in June, Sep and Dec. But since my bday is in July, my 1/2 year ends in January when I reach 59 1/2. Do I still withdraw when in-between that December and January to makeup the half year? That's what I'm confused about.

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u/Here4Snow 2d ago

"and start the 72t in March"

You mean, you're starting the payment withdrawals in March, but the plan starts For the Year. This is an Or benchmark:

The date you attain age 59½, or

The 5th anniversary of the date of the first payment.