Rebecca Dawson

Retirement, Investing, Taxes
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“Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country.”
Firm:

Silber Bennett Financial

Job Title:

Senior Vice-President

Biography:

Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country. Her mission is to be a trusted advisor to her clients by partnering with them to identify what is most important in their financial lives while providing tailored solutions to help achieve their goals.

For over 20 years, Rebecca has served as a financial advisor. She has developed highly refined methods for evaluating client's needs and formulating successful investment strategies. She and her staff provide an exceptional level of service to her clients, who are typically worth well in excess of $1 million and include some of the most prominent people in the United States.

Before joining Silber Bennett, Rebecca managed her own independent brokerage office since 1999. Prior to that she held similar positions with PaineWebber, Merrill Lynch, and Alex.Brown & Sons.

Her clientele have included corporate presidents, and officers, charitable foundations, pension funds, business owners, and wealthy retirees. Her affiliation with Silber Bennett Financial provides her clients with full service wealth strategies.

Education:

BA, Liberal Arts, University of Texas at Austin

Disclaimer:

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.

DOI: CA 0H72697  |  MEMBER: FINRA / SIPC

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How can I avoid the 10% early retirement withdrawal as a public safety employee retiring before age 50?
100% of people found this answer helpful

There are exceptions to the 10% IRS early withdrawal penalty and that includes when an employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan). This exception applies to 401(k) retirement plans only.

Qualified public safety employees: Effective for distributions after December 31, 2015, the exception for pubic safety employees who are age 50 or over is expanded to include specified federal law enforcement officers, customs and border protection officers, federal firefighters and air traffic controllers. Also, the restriction that only defined benefit plans qualify for the exemption is eliminated. Thus, an exemption is allowed for distributions from defined contribution plans or other types of governmental plans, such as the TSP. As amended by the Defending Public Safety Employees’ Retirement Act.

For more details, please see attached article:

How to Avoid the 10% IRA Early Withdrawal Penalty

Rebecca Dawson May 30, 2017 
86% of people found this article helpful

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Have you ever wondered how you could get money out of your traditional IRA pre-59.5 years of age without paying the 10% early withdrawal penalty? There is a little known section of the IRS tax code: Section 72t that allows you to take substantially equal periodic payments (SEPP) on an annual basis before the age of 59.5 without paying the 10% early withdrawal penalty. The IRS stipulates you take money out of your IRA for five years or until the age of 59.5, whichever is longer.

According to the IRS, funds contributed to investment vehicles such as IRAs or non-qualified annuities are locked into the investment until the money matures. Money in these accounts mature when the investor turns 59.5 years of age. Any and all funds taken out of these accounts prior to 59.5 are subject to a 10% early withdrawal penalty fee in addition to any income tax incurred by the withdrawal. Section 72t essentially allows investors to forgo the 10% fee by making SEPPs.

This allows investors access to those dollars for many differing personal financial reasons and mitigates the size of their traditional IRA, thereby decreasing their RMD (required minimum distribution) after age 70.5.

Keep in mind that any distributions coming out of your traditional IRA will count as provisional income, possibly increasing the likelihood your Social Security may be taxed, contrary to Roth IRAs, which have no taxation from distributions and are free from federal, state and capital gains tax as long as you are over 59.5 years of age. Roth IRAs also have no Social Security tax. Roth IRA distributions do not count against income thresholds that may cause Social Security benefits to be taxed. 

Set up SEPPs Before Retirement

In order to calculate the proper balance when taking advantage of the 72t you may need to act before retirement. By postponing until retirement you may risk tax rates being higher than they are today. And you may find you have to shift larger amounts of money because your assets by that time will have grown and compounded.

When you shift assets during retirement, the additional provisional income causes your Social Security to be taxed.

The amount you can withdraw by way of a 72t fluctuates based on a number of criteria, including the age of the account holder and interest rates. All of your future payments will be exactly the same until the SEPP is no longer in effect. It is important to know the amounts you have calculated will be the exact figures for your payments from the account. You cannot name your own amount to take each year.

How to Raise or Lower SEPP Amount

The way to impact the amount of the payment is to adjust the balance in the IRA. If you have more than one IRA available, you can transfer funds into one account to increase or decrease your payment. This must be done before establishing the SEPP. You cannot deposit money into or remove funds from your IRA while the SEPP is in place other than the required payments from the account each year. Any deviation from the prescribed payments will cause the SEPP to be canceled which can result in negative consequences. 

Exceptions to the 10% Early Withdrawal Penalty

The following are specific circumstances that will allow exceptions to the 10% penalty under IRS Section 72t:

  1. Age 59.5
  2. Upon death paid to the beneficiaries
  3. Disability
  4. Series of substantially equal periodic payments (SEPP)
  5. Certain qualified medical expenses
  6. Health insurance premiums
  7. Qualified higher education expenses
  8. First-time home purchase
  9. Seperation from service exception only for 401(k)s not IRAs.


Read more: How to Avoid the 10% IRA Early Withdrawal Penalty | Investopedia http://www.investopedia.com/advisor-network/articles/how-avoid-10-ira-early-withdrawal-penalty/#ixzz4l3OOQ4mW 
 

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