Early Retirement + Dividend Investing + Passive Income [Spreadsheet]– Here’s another tweaked version of my original spreadsheet that fellow blogger Tawcanjust posted abouton this site. This one incorporates dividend investing as well as other passive income streams you may have (and some Canadian ...
you won’t be able to withdraw money from your 401(k) or IRA without facing an early withdrawal penalty until you hit age 59 1/2. For example, with atraditional 401(k),you’ll not only have to pay income taxes on the money you take out, but Uncle Sam...
Barista FIREwas created as a solution for those who still needed supplemental income and health insurance to be financially independent. Instead of working at Starbucks, I was thinking of working at Coldstone Creamery in Honolulu to help supplement retirement life. Coast FIRE emerged for those who ...
If you have a Health Savings Account (HSA), that can help pay for healthcare costs in early retirement. If you planned ahead and opened a Roth IRA, you can withdraw those contributions at any time without penalty (just leave your earnings alone until you’re at least 59 1/2). You mig...
Other ways which allow investors to access funds from tax-advantaged accounts, such as IRAs, prior to the age of 59 ½ without a 10% penalty include: distributions to the extent the individual’s unreimbursed medical expenses exceed 7.5% of adjusted gross income (AGI) qualified higher educat...
Are you old enough to access retirement accounts such as a401(k)orIRApenalty-free? Do you have access to healthcare, and will you be able to afford it? What other sources of retirement income do you have available? Will taking early retirement have a negative impact on your pension (tradi...
There is an exception if you have a workplace retirement plan and want to retire earlier. Once you’re no longer employed, you can use the “rule of 55” to take penalty-free withdrawals from your 401(k) or 403(b). However, note that this rule doesn’t apply to IRAs; it only app...
Prior to age 59 1/2, there is generally no access to retirement accounts without paying an early withdrawal penalty so IRA, 401k, and similar accounts should not be tapped. Health insurance will usually be purchased via the Affordable Care Act (ACA), either on the federal exchange or on st...
for a traditional or Roth individual retirement account is 10% of the amount withdrawn. Keep in mind that you may also owe income tax in addition to the penalty. You can withdraw contributions (but not earnings) early from a Roth IRA without being subject to income tax and the penalty...
Once you turn 65, you can take money out of an HSA for any purpose without incurring a penalty, although you will have to pay regular income tax on any distributions. That makes it a great backup when you've maxed out your othertax-advantaged accounts.4 How Much Can I Contribute to a...