Retiring early
How do I reach my money before 59½?
Three routes to retirement money before 59½ without the 10% additional tax: the Rule of 55, 72(t) payments and a Roth conversion ladder.
Start here
Money before 59½It lays the three routes side by side against your accounts, so you know which page to open next.
These pages are for the US. In another country? See the pages for readers outside the US.
- Money before 59½
Which routes fit your accounts, side by side.
- Rule of 55
No 10% additional tax on the 401(k) of the job you leave in or after the year you turn 55; income tax still applies.
- 72(t) calculator
A series of IRA payments before 59½, set by an IRS method and kept on schedule until the later of five years from the first payment or age 59½.
- Roth conversion ladder
Converting each year so each conversion can come out after five tax years. The five years lift only the 10% additional tax before 59½; income tax on the conversion still applies.
Sources: IRC §72(t)(2)(A)(i); IRC §72(t)(1); IRC §72(t)(2)(A)(v); IRC §72(t)(4)(A); Notice 2022-6 §3.02(e); IRS, Substantially equal periodic payments, Q&A 9; IRC §72(t)(4)(A), (B); Notice 2022-6 §3.03(b); IRC §408A(d)(3)(F); Treas. Reg. §1.408A-6 Q&A-5.