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Early retirement poses several challenges, such as restrictions on withdrawals from tax-advantaged accounts and long retirement years.  This page presents resources to those who are considering early retirement.

==Withdrawing from your portfolio==

There are several ways to withdraw from your portfolio without incurring the 10% penalty applicable to retirement accounts.

* Taxable account.
* [[SEPP:Substantially Equal Periodic Payments | Substantially Equal Periodic Payments]].
* Withdrawal of contributions and conversion amounts from a [[Roth IRA]].  Note that contributions can be withdrawn penalty free at any time while a conversion amount must stay in a Roth IRA for five years since the first day of the year in which a conversion is done.
* [[457-b | 457(b)]].  Non-rollover contributions to 457(b) is exempt from the early withdrawal penalty. 
* Withdrawal from [[401(k)]] at age 55.  If you leave the company offering the 401(k) plan at age 55 or later, you do not have to pay the 10% penalty to withdrawal an amount from your 401(k).  See [http://www.irs.gov/faqs/content/0,,id=199909,00.html Frequently Asked Tax Questions And Answers Keyword: 401(k) Pension Plan] for details.

==Safe withdrawal rates==

You may need to re-evaluate [[Safe Withdrawal Rates | safe withdrawal rates]] if you are retiring early.  [http://www.firecalc.com/ FIRECalc] shows that withdrawing 4% of the initial portfolio value plus inflation adjustments in 49 subsequent years (thus total of 50 years) results in the success rate of 85.1% using the default configuration.  Running the same scenario with the 3.5% initial withdrawal rate results in the success rate of 98.9%.

==See also==
*[[Withdrawal_Methods|Withdrawal methods]]

==Links==

* [http://www.firecalc.com/ FIRECalc]
* [http://www.early-retirement.org/ Early Retirement & Financial Independence Community]
* [http://www.amazon.com/Work-Less-Live-More-Retire/dp/1413302009 Work Less, Live More: The New Way to Retire Early]

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[[Category:Retirement_Planning]]