Retiring Early? Ways to Help Avoid Early Withdrawal Penalties on Retirement Accounts

Unless you're talking about retiring early, it's unlikely your financial professional will ever mention the possibility of using something called a "series of substantially equal periodic payments" -- or a 72(t) payment strategy -- to take penalty-free withdrawals from your IRA before age 59½.

There's no reason to wade into those weeds unless it's absolutely necessary. The calculations can be complicated. There are a lot of ways to mess things up. And if you get it wrong, the penalties can be costly.

So, I'm not personally a huge fan of this complex subsection of the tax code. But I am a fan of having options. And if you find yourself in a situation where this particular strategy might suit