Retirement Planning and Distribution Strategies
Accumulate, then decumulate
Cover the vehicles - 401(k)/403(b), traditional and Roth IRA, SEP, SIMPLE, defined benefit and defined contribution plans - and the rules that drive questions: contribution limits, catch-up contributions, deductibility phase-outs, the 10% early-distribution penalty and its exceptions (age 59½, disability, death, QDRO, substantially equal periodic payments under 72(t), first home up to $10,000, qualified higher education, and birth/adoption distributions), and required minimum distributions. Under SECURE 2.0 the RMD age is 73 for those born 1951–1959, rising to 75 in 2033; Roth IRAs have no lifetime RMDs for the owner. The first RMD deadline is April 1 of the year after the required beginning date.
Distribution strategy: the "4% rule" is a starting point, not a promise. Sequence-of-returns risk - poor returns early in retirement - matters more than average return. Also know Social Security claiming ages (62, full retirement age, 70 with delayed credits) and the taxation of benefits (up to 85%).
Traps. Confusing the April 1 grace period with a second RMD; applying the old age-70½ rule; forgetting that the 10-year rule generally applies to inherited IRAs for non-eligible designated beneficiaries.
Rule of thumb. Withdraw roughly 4% initially, inflation-adjust, and revisit annually; hold one to two years of spending in cash so you never sell equities into a downturn.