Comment on 'Premature Withdrawals From Individual Retirement Accounts: A Breakeven Analysis'

Key Points

• This research evaluates the breakeven analysis for individual retirement accounts to improve decision-making.
• Analyzed the breakeven year based on the original OSD methodology.
• Developed an alternative procedure for determining breakeven years.
• Constructed a table of IRA breakeven years to facilitate understanding.
• Illustrated that following the original OSD method may lead to incorrect financial decisions.
• Provided a more reliable alternative procedure for calculating breakeven years.
• Created a useful reference table for evaluating IRA contributions.