3127: How To Get Your Money Out Of Your 401K Before 59 1/2 by Wanderer of Millennial Revolution

Optimal Finance Daily - Financial Independence and Money Advice

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com.

Episode 3127:

Wanderer breaks down how to access your 401(k) funds before age 59½ without paying penalties, using a strategy called the Roth Conversion Ladder. By carefully rolling over 401(k) funds into a Traditional IRA and then converting to a Roth IRA within tax-free limits each year, you can build a systematic way to unlock your retirement savings early and maximize tax efficiency.

Read along with the original article(s) here: https://www.millennial-revolution.com/invest/get-money-401k-59-1-2/

Quotes to ponder:

"Money inside your 401(k) is kinda like a raw pot roast. You can’t eat it right away."

"It’s all based on the IRS rule that Roth IRA conversions, rather than contributions, can be withdrawn penalty-free 5 years after the conversion has taken place."

"When you do quit, you roll-over all of them into a Traditional IRA. This is done tax-free."

Episode references:

How to access retirement funds early by Mad Fientist: https://www.madfientist.com/how-to-access-retirement-funds-early/

Learn more about your ad choices. Visit megaphone.fm/adchoices