Rule 72(t)(redirected from Rule 72-t)
An IRS rule allowing IRA account holders to make withdrawals before the age of 59.5 without any penalty, provided they make at least five substantially equal periodic payments. This exempts the account holder from the 10% penalty that would otherwise be assessed. On the other hand, it reduces the amount of principal in the IRA, which may result in an account that is unable to cover the entirety of one's retirement.
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