Permalink Submitted by Alan - IRA critic on Tue, 2017-05-02 20:22
Sure, but the combined taxable 72t distribution in addition to your wages may increase your marginal tax rate. Once you are reasonably sure that your job will last until the end of your plan, you might consider the one time switch to the RMD method to reduce your 72t distribution and preserve more of your IRA. Or if you have a retirement plan with your new job that you are not maxing out, you could just increase your pre tax contributions to somewhat offset the additional taxable income.
Permalink Submitted by Alan - IRA critic on Tue, 2017-05-02 20:22
Sure, but the combined taxable 72t distribution in addition to your wages may increase your marginal tax rate. Once you are reasonably sure that your job will last until the end of your plan, you might consider the one time switch to the RMD method to reduce your 72t distribution and preserve more of your IRA. Or if you have a retirement plan with your new job that you are not maxing out, you could just increase your pre tax contributions to somewhat offset the additional taxable income.