How to Use Your Retirement Savings, Penalty-free… Right Now

People can use retirement money before age 59, but most people don’t know it. 
Thanks to Section 72(t) of the IRS code, you can take out your savings at any age, even if you are in your 30s or 40s, without paying a penalty.
Of course, if you use the money now, it won’t be there later, when you may really need it, i.e. when you’re too old to work or your health doesn’t permit it. But the important thing to remember here is that it is YOUR money, and you should be able to use it when you want to, right?
A Forbes article documented how a chiropractor, Alfonse DeMaria, took $700,000 from his IRA and converted it to a $3,000-a-month income stream.  He bought himself a new six-bedroom home on 269 acres and started enjoying more time with his family.
Here’s how you can use Section 72(t) to access retirement funds now:
1.  You must pay income tax on the retirement funds you convert, which you would have to pay at the time you withdrew the funds at age 59 1/2, anyway.
2.  You must continue collecting your money for five years or until you hit age 59 1/2, whichever comes first.
3.  You must withdraw money in an even series of withdrawals.
The IRS lets you decide how much you’re going to withdraw in three different ways:
1.  Required minimum distribution.
2.  Fixed amortization.
3.  Fixed annuitization.
The IRS uses your life expectancy to figure out how much you should take each year.
If you’re thinking about doing this, I recommend STRONGLY that you first have a Spending Plan in place and are in control of your emotions and your spending.  Second, make sure you have a retirement plan in place so you know how taking the money out early will affect your long-term picture.  And finally, check with a Money Mastery expert and accountant before proceeding with this option.