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Dream Of Early Retirement May Not Be Realistic

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I wish the authors of these articles would be more knowledgeable. They incorrectly say it isn’t possible to withdraw money from your IRA/401k penalty free if you retire early. 

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1 hour ago, EdLaFave said:

I wish the authors of these articles would be more knowledgeable. They incorrectly say it isn’t possible to withdraw money from your IRA/401k penalty free if you retire early. 

 

You are probably right. I think you can pull retirement money  out early penalty free if you retire early under certain IRS provisions for both 401k and IRA rules. I can see where she may have gotten tripped on that because most 401k plans mention  59.5 as the big moment for allowed withdrawal. Let's face it retirement investment laws and  rules can be complicated so I don't hold it against her.  Let's also face the fact that many online  articles these days that are written  on financial issues are often written by freelancers who don't know much. Often they get things right and sometimes they don't know what they are talking about. Even those that write monthly or even weekly columns for major publications are often  pressed for time and as a result often  miss   minute but important facts as well. 

This was really helpful to me and I hope they got it right!!  401k does not interest me because I'm not in one. 

https://www.sensiblemoney.com/learn/at-what-age-should-i-start-making-401k-withdrawals/

This is what IRS says a about early retirement withdrawals. 

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

 

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I don’t blame the author too much, but I was repeatedly told I couldn’t access my 401k penalty free until an advanced age and it discouraged the notion of FIRE or the use of a 401k.

Luckily the FIRE and investing community provided the correct information. 

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