When John and Janet Nelson of Englewood, Colo., began thinking two years ago of retiring in their mid-50s, they had more than $1 million in their two individual retirement accounts. They needed to tap that money for living expenses but were worried about early withdrawal penalties from the Internal Revenue Service. Then their financial planner told them of a strategy for using their IRA funds without losing a big chunk to taxes. They could take money out in "substantially equal payments" for five years or until age 59%, whichever is longer.
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