Retiring Early? CPA Explains How To Use A 72(t) to Escape The 10% Penalty | Bill Stecker (Part1) | 234

You won't find a more comprehensive resource on the topic of 72(t) plans and substantially equal periodic payments (SEPP). This little-known IRS provision gives you a perfectly legal way to access your retirement money before 59½ without the 10% penalty… and almost nobody in finance wants to touch it! So, Jackie brings back the one expert that lives and breathes 72(t)s, William (Bill) Stecker, CPA and founder of 72tcalc.com. Bill picks up where he left off when he last appeared on the show in 2025. He further explains the nuances of 72(t) plans and how to avoid common mistakes. Hear how 72(t)s can be incredibly powerful tools for early retirees, laid-off workers, and anyone ready to leave the traditional "hours-for-dollars" trade. This episode covers What a 72(t) or SEPP plan actually is Access to retirement accounts before age 59½ without the 10% penalty tax Why so many financial professionals hesitate to work with 72(t) plans  The minimum plan period and why modifying a SEPP can become extremely expensive  How to determine how much early retirement income you actually need The differences between the Rule of 55 and a 72(t) strategy  Why Bill usually prefers moving money from employer "plan land" into "IRA land"  How brokerage accounts, Roth contributions, part-time work, and SEPPs can work together  Why inflation and unexpected expenses need to be built into an early-retirement income plan  How splitting an IRA into separate accounts can create flexibility and isolate potential mistakes This is the first part of a 2-part episode. Be sure to follow the show and catch part 2 next week (9/6/26). . === SUPPORT  THE  SHOW === 📩 Sign up for our newsletter 🌐 Visit Catching Up to FI website  🔗Connect with us ☕ Like what you hear on Catching Up to FI? Support the show at "Buy Me a Coffee"  🎙️We love hearing from you! Record a Voice Message with your feedback or question Record a Voice Message with your feedback or question   . ===DEALS & DISCOUNTS FROM OUR TRUSTED PARTNERS=== F.I.R.E. For Dummies Did you know that co-host Jackie Cummings Koski, CFP®, AFC® is also author of "F.I.R.E. For Dummies"? This is the perfect guide for anyone looking to move from the basics of their finances to reaching F.I.R.E. (Financial Independence, Retire Early) and enjoying the time freedom it creates. Even if you feel behind on your finances, the steps in this book will help you catch up sooner than you ever imagined.  Learn from someone who actually achieved F.I.R.E. in her 40s even after getting a late start  Covers everything from basics to advanced strategies in one guide  Practical solutions for early retirement obstacles like health insurance and early withdrawal penalties  📕 Get Your Copy  (currently 40% off on Amazon) For a full list of current deals and discounts from our partners, sponsors and affiliates, click here: catchinguptofi.com/our-partners   . RESOURCES MENTIONED ON THE SHOW 🌐72tcalc.com Website  Free consultation with Bill Stecker's Firm (The Marble Group) email: [email protected] Phone: (312) 361-0221  72(t) Calculators  72tCalc   FI Tax Guy 72(t) using Google Sheet Dinkytown  CalcXML UngrindFi   Official IRS Tax Code 72(t)    . ⏰ Related Episodes  72(t) Expert Tells All: No More Secrets About Early Withdrawals (Part 1) | Bill Stecker | 131 Cashing in on 72(t): The Goldmine of Early Retirement Rules (Part2) | Bill Stecker | 133    . 📌Disclaimer: Our content is for general education and information purposes only. We are not providing financial, legal, or tax advice. Always do your own research or consult a professional before making important decisions.