How to Build a Bulletproof 72(t) Plan: CPA Audits Jackie's Real Numbers | Bill Stecker (Part 2) | 235

A 72(t) plan is little-known IRS provision which gives you a perfectly legal way to access your retirement money before 59½ without the 10% penalty. In this second half of the 2-part episode, Jackie brings back Mr. 72t, William (Bill) Stecker, CPA and founder of 72tcalc.com. This episode takes on the practical half of their deep dive into 72(t) plans as they move from theory to execution. Jackie puts her own plan on screen to let Bill do what he does best... audit it! He scrutinizes her $240k starting balance, $15k annual withdrawals, plan timeline, and the surprising fact that her account has actually grown even though she's been taking money out.  This episode covers Why Bill strongly favors the amortization method for most practical 72(t) plans How the 5% interest-rate floor changed SEPP planning The three basic inputs needed to calculate a 72(t) How to document the correct starting IRA balance What records to keep in case the IRS ever asks questions Why annual withdrawals may reduce opportunities for mistakes How to handle a 1099-R that says "early distribution, no known exception" Jackie's real-life 72(t) setup, asset allocation, and withdrawal schedule How 72(t)s can work alongside Roth conversions and other income strategies Why some people may qualify for better early-withdrawal exceptions and not need a SEPP at all This is the second part of a 2-part episode. Be sure to subscribe the show and catch part 1 (episode 234) from 8/30/26.   . === 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: themarblegroup@wispertel.net Phone: (312) 361-0221    Official IRS Tax Code 72(t)  IRS Notice 2022-6 (sets a new floor interest rate of 5% for calculating 72(t) distributions) 72(t) Calculators  72tCalc   FI Tax Guy 72(t) using Google Sheet Dinkytown  <a href="https:/