New IRS Rule Lets Early Retirees Take More Money from Plans

Substantially equal periodic payments are one way to avoid the 10% early withdrawal penalties from your IRA or 401(k), and fixed annuities can play a valuable role in this early retirement income strategy.

A hand throws a paper airplane made out of money.
(Image credit: Getty Images)

Post-pandemic, more people want to tap their retirement plans so they can retire early. Thanks to an IRS ruling that became effective in January 2022, they now can take bigger early withdrawals without tax penalties.

Here’s how it works.

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Ken Nuss
CEO / Founder, AnnuityAdvantage

Retirement-income expert Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed and immediate-income annuities. Interest rates from dozens of insurers are constantly updated on its website. He launched the AnnuityAdvantage website in 1999 to help people looking for their best options in principal-protected annuities. More information is available from the Medford, Oregon, based company at or (800) 239-0356.