The Ultimate Penalty-free 72t Strategy for a Tax-free Retirement

(don’t forget to checkout the video too)

A 72t is not a well-known strategy in the IRS code that allows you early access to your retirement money (penalty-free).

Once you start a 72t you can’t stop until you are either 59–1/2 or until 5 years have lapsed (whichever is longer), but these can be a great tool for a tax-free retirement. 😎

Here are 5 things you can do by starting the early withdrawal process from your taxable retirement accounts (ideally an IRA):

✅ You can take a 7-year distribution to fully fund a long-term care contract to protect your future retirement income

✅ You can do a 10-year distribution to fully fund a tax-free legacy for your loved ones (making sure your kids don’t inherit a large amount of taxable money)

✅ You can create a stream of income payments that can be used to max out your Roth IRA each year (moving taxable money over to the tax-free bucket)

✅ You can use your distributions to fully fund annual backdoor Roth contributions & MEGA backdoor Roth contributions

✅ Lastly, you can reduce the balance of your taxable retirement account enough so that you can collect social security tax-free

This is a little known loophole that can really help you reposition that big, taxable bucket of money you have, so that you can collect most (if not all of it) completely tax-free in retirement… 🙌

Which not only allows you to leave a legacy to your loved ones tax-free, but can also help your retirement savings last 5–7 years longer‼️

Let’s chat 💬😎

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Enjoy this blog? You’ll probably enjoy this one as well: Growing Your Money With NO RISK of Loss (how indexing works)

To your success,

Matt