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add money to 72(t) account, then withdraw later?

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Last Updated On
Bycabsher111

L1: add money to 72(t) account, then withdraw later?
Hi,
OK, I have had a 72(t) account set up for over 4 years now. It’s an IRA accountat etrade, I actively trade the funds in the IRA, and I take an equal distribution out every January.
Well, last week I got a little carried away with my trading, did some buying and selling similar to day trading. Etrade has informed me that I am in danger of violating a free ride rule, and I can be put on a 90 trading restriction. I can avoid this if I
put an additional 21,000 in the account, and leave it there for at least 2 days.
So my question is…..if I deposit this 21,000 into my account, and then withdraw the exact same amount 2 days later….will I have busted my 72(t) by doing this?
My only other choice is to do nothing, then I won’t be allowed to trade within the IRA for 90 days, I was hoping to avoid that.

Thanks for any knowledge on this
2011-10-10 15:44, By: cabsher111, IP: [208.72.180.21]

L2: add money to 72(t) account, then withdraw later?
So my question is…..if I deposit this 21,000 into my account, and then withdraw the exact same amount 2 days later….will I have busted my 72(t) by doing this?
YES!
2011-10-10 15:57, By: Gfw, IP: [205.178.73.77]

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