withdrawal taken on wrong date

L1: withdrawal taken on wrong dateMy 72t was to expire on 12-31-2009. Everything went very well until 12-31-2009 when my1-1-2010 withdrawal came out of my account. So the way I see it my 72t is messed up as well as my income for taxes in 2009 and 2010. What can I do to take care of this problem? Can it be reversed by my broker? Thanks for any info you can give me.2010-01-02 05:50, By: maddie, IP: [204.193.193.136]
L2: withdrawal taken on wrong dateFirst, be totally sure that your modification date is 12/31/09 before you act and mess things up worse. For that date to be correct, at least 5 years must have passed from the date of your first 72t distribution or you reached 59.5 on that date, whichever is longer.As long as you have one rollover open with this IRA account, you have 60 days to roll that distribution back into the IRA. In that case, your 1099R will show too much distributed but when you report a rollover of this last distribution, your 1040 will indicate the correct amount. If you do not understand the one rollover limitation, please advise.It is NOT a good idea to have 72t installments issued on the last day of the month because sometimes there is no way to correct such errors. It is also leaves the custodian with no room for error in reflecting your total distributions on the 1099R if there systems malfunction for even one day. I will assume that since the start of your plan that you have taken out at least 60 months of distributions or more.2010-01-03 04:41, By: Alan S., IP: [24.116.165.60]

L2: withdrawal taken on wrong dateMaddie,I would also ask your custodian for the total amount that will be on the 1099-R for 2009, to see if they include this payment. I had a similar pension problem in DEC 2005, when the Jan 1st payment hit my bank by wire transfer on 12/31, due to 1/01/06 falling on Sunday and with the holiday closing banks onMonday 1/02/06. I called them to ask if this would give me 13 payments on the 1099 for 2005, and they assured me that the payment would be in the next year’s 1099 and they were correct. The system thought of it as a January payment, but I guess it was”rounded back” to 12/31 for wire transfer purposes because 1/01 and 1/02 were non-business days. It is at least worth checking outbefore you get too worried.Alan is correct on the danger of any payments scheduled at end of the month or beginning of the month for this reason, and for not giving you a chance to correct errors for payments made at end of DEC. My two 72t plans are paid on 5th and 6th of month for that reason. I could not choose payment date for the pension. KEN2010-01-04 15:52, By: Ken, IP: [71.192.120.143]

L3: withdrawal taken on wrong dateThank you so much for both of your replies. I lucked out because the distribution was coded for 2010. It came out on 12-31-2009 to try and make it to the bank today. The December statement has the correct yearly distribution amount on it. Thank you alsofor the work that is done to maintain this site. I have used this site for reference for almost eight years. I appreciate all of theuseful information.2010-01-05 00:03, By: maddie, IP: [204.193.196.144]

L4: withdrawal taken on wrong dateGood.This appears to have been caused by an automatic adjustment some payors make to offset delay caused by long Holiday weekends. They distribute the payment early to offset what would otherwise be a 3 day plus delay in receipt of the payment. Apparently, the re adjust the distribution date at least at year end to prevent the sort of problem this may have caused your 72t plan. Another reason not to use these late month distribution dates, because certain errors may be tougher to fix.2010-01-05 18:19, By: Alan S., IP: [24.116.165.60]