Withdrawal calculator

[westbranch]

That's interesting.

I was told by many that you are subject to pro-rata rules if it is inside of a financial vehicle and you try to pull it from there prior to 59-1/2 using 72(T) or Rule of 55...

Pro-rata rules apply mainly to backdoor Roth contributions and nondeductible traditional IRA contributions/withdrawals.

With Roth withdrawals they come from contributions first.

 

[Bonasababy]

Pro-rata rules apply mainly to backdoor Roth contributions and nondeductible traditional IRA contributions/withdrawals.

With Roth withdrawals they come from contributions first.

Rollovers 2nd. Earnings last.

 

[Bonasababy]

I had a college finance class where the professor showed the math on saving from age 25-35 beating the person saving from age 35-65. My wife and I started contributing 10%+ in 2012 at age 23/24. We were making $70,000 gross household income, rent was $600 a month in small town midwest. We lived like kings!

Amazing what the compounding has done in the last 14 years. Actually dropped contributions quite a bit for 2026 to cover some home projects. I want more flexibility in our mid to late 50s so don't want too much in the tax deferred bucket. Good problem to have.

Don't let these thing dissuade folks from thinking they can't start ramping up that % later in life. I occasionally run into people who say they weren't able to do much in their early getting started years and think they missed the boat and can't retire until full SS age. Starting late is better than not starting. And for many, expenses slow down in the last 15 years or so. If yours are low enough there's an increase in how much you are allowed to contribute starting at age 50 I think.

With 3 kids we never hit 10% for a decade or so. Really ramped it up after the kids were gone from the house. Retired a bit early, my wife at 62. Pension made a real difference though, and will continue to for the rest of our lives.

One strategy I like came from a work colleague. Has three adopted kids, but they are able to make it work....every raise take a portion to increase your contribution rate.

And regarding paying off that mortgage--there is peace of mind in that, but if it's at a lower rater than avg. returns in your retirement account, better to put more away for retirement than try and pay it off early.