Whether you're into fire, that's financial independence, retire early, or you need to tap your

traditional IRA before the official retirement age of 59.5. It typically triggers a 10% early

withdrawal penalty on top of ordinary income taxes.

That's a big bite out of your wealth that you'd probably like to avoid.

That's what today's topic is about.

You might be surprised to learn that the IRS allows you to skip that hefty 10% early

withdrawal penalty when you set up a workaround known as a

72T plan. This podcast will review how 72T distributions work, their pros and cons, and what it might

be a good financial move. Welcome back. This is episode 983 of Money Girl. I really appreciate

you being with me and downloading the show. If you're new, I'm Laura Adams, an award-winning

author, on-camera spokesperson, money speaker, and founder of The Money Stack. That's my

substack newsletter. Free subscribers automatically receive my money success toolkit,

which includes the exact templates I use to manage my money. You can learn more,

ask money questions, and of course, sign up for the money stack for free at laura d adams.com.

Again, that's laura d adams.com. I also have a voicemail system where you can leave a

message with your question or comment. Just call 302-364-0308. And you can also find that information

in the show notes. I'd love to feature your question on Finance Friday.

That's our weekly Q&A bonus edition of the show. All right, let's talk about 72T payment plans.

The name 72T, you know, it sounds a little strange. It's kind of like 401K, all of these,

come from its section number in the IRS tax code.

It's also called a 72T payment plan, 72T distributions, substantially equal periodic payments,

or SEPP, and a set plan. As I mentioned, it's a clever rule that allows you to plan for early

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