I've done a number of interviews on the show with early retirees and early retiree hopefuls. One common theme is that many of them are using traditional retirement accounts but are planning to retire before 59.5. 

How is that possible without paying a bunch of penalty tax?

Today, I share with you the answer to that question.

1. They may not actually take distributions from the retirement accounts. 
2. They might pay the 10% penalty tax because it's cheaper than the alternative.
3. They might do a Roth Conversion Ladder
4. They might use the 72(t) SEPP rules.

Enjoy the show!

Joshua

Links:

• New York and California state income tax rates.
• Dinkytown 72(t) calculator
• Kitces article on Bobrow v Commissioner