Lookup 72(t) Rule for substantially equal periodic payments or SEPPs. This is an IRS rule that allows you to pull funds from retirement accounts before age 59.5 without penalty.
I’ve not done this personally but might in the future.
To do this you must pick a method (the IRS has 3 methods) of determining how much you need to take annually and you must take at least 5 SEPPs or at least to age 59.5 whichever comes later.
I interpret this as if you start at age 56 or 57 you’ve got to do SEPPs until age 61 or 62.
But you could start at age 51 and then do SEPPs until 59.5.
Once you fulfilled the requirements above and you get to where you can access other funds like Roth or SS you don’t have to continue the SEPPs or withdraw funds from the taxable accounts if you don’t need to.
But when you get to age 72 or 73 you’ll have to take RMDs unless you convert your taxable retirement funds to Roth.
And don’t forget that Roth contributions can be pulled out at any time without any penalty.
Also, once you quit your jobs, transfer your 401Ks to a brokerage like Fidelity or Schwab.
You’ll both need a regular IRA and Roth accounts.
You can roll over a traditional 401k to an IRA and Roth 401k to a Roth IRA.
If you already have both accounts then just put the funds together but keeping regular separate from Roth.
Company sponsored 401k plans have higher fees and limited mutual funds to choose from.
Also, the company could move 401k record keepers and you’d have to keep track of that, different website, new login, more hassle, etc.
Get a tax accountant to help you with the 72(t) to make sure you do it correctly.
Good luck!
