How to Build a Bulletproof 72(t) Plan: CPA Audits Jackie's Real #s | 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.

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