Alternative to 72(t)

L1: Alternative to 72(t)Out of curiousity, is there any alternative to the 72(t) rule that someone under 59 1/2 can take early distributions without it beinglockedfor 5 years? Someone just posed a question to me and mentioned something about IRS 8713 or IRC 8713? Thanks for any insight!2010-05-13 16:19, By: WCM, IP: [68.196.243.173]
L2: Alternative to 72(t)8713 refers to Low Income Housing Tax Credits.There are hardship provisions to permit taxpayers to take early distributions from 401-K plans, but they are very strict and specific, and are still subject to income taxes, PLUS the 10% penalty.There are several exceptions to the 10% penalty for early distributions from IRA PLANS for specific purposes/reasons without incurring the 10% penalty.If you give us the facts, we might be able to give you some advice.Your date of birth, type of retirement plan(s), balance(s), and your needs would be a good stasrting point.If you have separated from service with the employer, it’s age 55 for 401-K plans, and even better results if there is NUA employer stock in your plan.2010-05-13 16:46, By: dlzallestaxes, IP: [173.49.30.37]

L3: Alternative to 72(t)I believe the option that I was meant to be told was Tax Topic 558, tax on early distribution from retirement plans: http://www.irs.gov/taxtopics/tc558.html.Near the bottom is states the following:
The following additional exceptions apply only to distributions from a qualified retirement plan other than an IRA:

Distributions made to you after you separated from service with your employer (State or local government), if the separation occurred in or after the year you reached age 55 or distributions from qualified governmental defined benefit plans if you were a qualified public safety employee who separated from service on or after you reached age 50,
Distributions made to an alternate payee under a qualified domestic relations order, and
Distributions of dividends from employee stock ownership plans.

What is considered “other than an IRA?” Is it a 401(k), 403(b), pension, etc? I assume once you rollover your pension and 401(k) to an IRA it no longer falls under these rules.2010-05-13 17:13, By: WCM, IP: [68.196.243.173]

L4: Alternative to 72(t)Yes. Everything you stated in your last paragraph is correct.2010-05-13 17:36, By: dlzallestaxes, IP: [173.49.30.37]

L5: Alternative to 72(t)Here is an up to date chart showing side by side comparisons between IRAs and Qualified Plans and penalty exceptions that apply:http://www.mhco.com/Library/Articles/2010/APreDist_Chart_041610.html2010-05-13 21:59, By: Alan S., IP: [24.116.165.60]