On one hand, if you’re nearing retirement, have little in tax-deferred savings, and spread the withdrawals from those savings over a number of years, you’ll pay little or no income taxes.

On the other hand, if you have substantial tax-deferred savings at retirement or withdraw your savings rapidly, you can end up in a higher tax bracket especially since you may end up paying tax on social security benefits.

I’ve chosen my method so that in the short term I’m not unduly influenced on Roth IRA Vs tax-deferred savings influence on tracking net worth short term, and can focus on long-term tax strategy in choosing between these options.

I suggest anyone considering either starting substantially equal distributions, or modifying current distributions obtain advice a qualified tax advisor as the application of this and previous tax rulings are also subject to numerous “IRS private letter” interpretations which are not readily available to the public on-line.

Really? I was under the impression that if you chose that path you were stuck with it even passed 59.5. Thats actually a huge improvement. Can I verify that anywhere?

there is no limit on withdrawals after age 59.5

If you are willing to take “substantially equal installments” according to IRS life expectancy tables, you can begin withdrawals from an IRA (any 401-k can be converted to such after leaving employment), at any age you want with no penalty. Its a little known fact but it is true. The only caveat is once you start the “substantially equal withdrawals, you have to continue with them on that exact schedule, without deveating from the IRS withdrawal schedule for the rest of your life.