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I hope that some of you that have previously transitioned from working a job (= Just Over Broke) to become (just) a full time trader may be willing and able to help me (?), ok? …

I would Love to be able to “retire from”/quit my full time job and just trade full time!

Unfortunately, most of my funds are currently tied up in my retirement accounts = 401Ks, IRAs, from which (to the best of my knowledge) I cannot withdraw, without incurring a significant penalty, >~ 10%, until I am >~ the current “retirement age” of 59.5, which I also expect may continue to increase before I get there, as I just recently turned 54, so …

My question(s) is …

Does anyone know how I may be able to withdraw the funds I need to trade and live on from my retirement accounts – 401Ks, IRAs, prior to my turning >~59.5, without incurring such a (IMHO excessive) penalty? and if so, then what all do I need to do to be able to do so?

Any and All assistance in these regards would be Most Appreciated!

Thank you for your help in these regards! Good Luck! And Have a Great Trading New Year / 2021!

– Michael S. DeVries

Updates / Answers Received:

02/20/2021:

Others to whom I have previously asked these questions have referred me to the CARES Act allowing the withdrawal of up to $100K from an IRA without incurring the normal 10% penalty, but it appears 1) you still have to pay the taxes on any withdrawn funds, although you can spread those tax payments over 3 years, but those taxes would probably cost me more now at my current tax bracket then later once I can retire, and 2) you apparently, per what I can find, e.g. on Fidelity, have to be able to show/prove a Covid impact, which I currently can’t really, so … ??

Another colleague, Steve Young, recommended that we Google IRS Rule 72T, for which I found the following links / information:

1. https://www.investopedia.com/terms/r/rule72t.asp#:~:text=Rule%2072(t)%20allows%20penalty,and%20403(b)%20plans.&text=This%20rule%20allows%20account%20holders,otherwise%2Drequired%2010%25%20penalty.
2. https://www.investopedia.com/articles/retirement/02/112602.asp
3. https://www.investopedia.com/ask/answers/082015/what-are-best-ways-use-your-401k-without-penalty.asp

I also found that it appears that I may (or may not) be able to use the SEPP plan to be able to withdraw funds from those 401k(s) to pay the bills before I reach the current 59.5 retirement age without paying the 10% penalty and/or excessive taxes.

We also need to figure out how to plan/ cost effectively pay for health care/insurance for my partner and I until are Medicare eligible, so …

Any and All further assistance in these regards would be Most Appreciated!

Thank you for your help in these regards! Good Luck! And Have a Great Trading New Year / 2021!

– Michael S. DeVries