Want to retire early? Rule 72(T) may help
The rule 72(T) is a pretty simple IRS regulation. Under this rule you are able to avoid the 10% penalty that the IRS implements when you withdrawal out of your IRA. If you take substantially equal periodic payments" (SEPPs). Which is a complicated way to say, if you take out the same amount every year based off your life expectancy for a minimum of 5 years you will not get a 10% penalty for early withdrawal.
You may do this with taxed differed funds within non-qualified annuity too. This is known as a 72(Q). The same rules apply it just uses funds that are not qualified. These two rules that the IRS lets us use can help lead to an early retirement. If you would like more info on the rule of 72(T) go to www.annuitynews.net or http://myselfspace.net/blogs/dustin_weaver/
-Dustin Weaver ACS PCS AAPA