Tag Archives: IRA Distribution

October 2016 Video, Financial Planning Tips and Economic Review- By John Kvale

Here is our October 2016, Financial Planning Tip (S) and Monthly Economic Review, along with a Video for your viewing and listening pleasure. Hope you enjoy!

October 2016 Video


Financial Planning Tip(s) –

Charitable Giving from An IRA

Yes we CAN finally donate funds from an IRA, as our post reminds, as long as we meet the following requirements:

  1. Already be age 70 ½ on the date of distribution
  2. Submit a distribution form to the IRA custodian, requesting that the check be made payable directly to the charity
  3. Ensure that no tax withholding is being done
  4. Send the check directly to the charity, or to the IRA owner to be forwarded along to the charity

Tricks for Getting Health Insurance

Here are a few great ideas we have learned over the years, as mentioned here for getting Health Coverage:

  •  Stay on your significant others coverage as long as possible
  • Be a member of a select group-
  • Create a Group
  • Six month Cobra Extension
  • Employer Qualified Long Term Benefits
  • Military Members 

Cool College Review Information

Our somewhat humorous, but handy review of Princeton College Ranking Review.  Some good and others, well maybe you would rather not be a part.

Economic Update

Banks are Lending



On the far right…. look at that money dripping out of the banks and into the US Economy….

Speaking of Economy, how about this NICE GDP (Gross Domestic Production) release- Far right graph bar rising… THAT’s GOOD!



Have a Great Day!

See you next month !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
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How to get to your retirement account BEFORE 591/2 without penalty….Rule 72T

Contrary to many cookie cutter recommendations there are situations when it makes sense to draw from the so-called sacred IRA or other type of qualified retirement plan before 59 1/2.  While not a regular occurrence, it is possible and perfectly legal. Examples of early distribution needs include tax and required minimum distribution minimization, along with oversized qualified pool depletion techniques.Rule

Rule 72T allows investors with certain restrictions to withdraw from their IRA or other similar type qualified accounts.

Here are the main details:

  • The investor must take substantial equal periodic payments for at least 5 years or until age 59 1/2 which ever is longer
  • Distribution amounts are determined by mortality and distribution rate assumptions and CANNOT be changed once commenced
  • Distribution amounts can be controlled through account segregation size

This is one of the techniques that should carry a warning, “Do not try this at home by yourself” as there are many pitfalls that can cause excruciating tax pains if done incorrectly. However, established correctly, monitored, and carefully planned, rule 72T can be a life savior in some circumstances allowing early (pre age 59 1/2) non-penalty withdrawals.

Have a great day!


PS Just as the warning says, this is not for the faint of heart and also this post is not a recommendation to complete this technique, careful consideration is needed and every situation is different.

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