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First year of 72(t)

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Byjag

L1: First year of 72(t)OK Ive asked this before and you guys were great help. If I were to start a 72(t) this month and the monthly draw was $1200/month, is it allowed to just take $3,600 (Oct, Nov , Dec) for 2008 and then 1,200/month for 2009 and beyond?? The custodian is telling me I need to tkae out all $14,400 by 20087 year end. I thought you could do either when you had a short year to start off. Where is it written I can/cannot do this??Thanks in advance.2008-10-13 11:25, By: jag, IP: [71.55.169.161]
L2: First year of 72(t)You are correct. You can take out either the entire ANNUAL DISTRIBUTION that you calculated for all full years, or you can take a pro rated portion for the months from your first distribution until 12/31/2008.Since your present broker, or his firm, is clueless, I suggest you transfer your IRA to a QUALIFIED firm, and then set up your SEPP 72-T.2008-10-13 12:09, By: dlzallestaxes, IP: [96.245.168.66]

L2: First year of 72(t)agreed….where can I find somehting in writing that explains this…I thought this site addressed this in the FAQ section….I need more info…thanks2008-10-13 12:13, By: jag, IP: [71.55.169.161]

L2: First year of 72(t)The following is alinkto the PLR that allowed the pro rated monthly option. It is listed in the PLRs of interest on this site:http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl7af5/9/doc2008-10-13 15:57, By: alan+s., IP: [24.116.165.60]

L2: First year of 72(t)Thanks…Anyone else got any links/leads??? GFW?? Badger?? Thanks so much…2008-10-13 18:23, By: jag, IP: [68.205.59.129]

L2: First year of 72(t)If you are looking for something really definitive, you may want to consider getting your own PLR – not exactly an inexpensive proposition. Most variations of a pure annual distribution method are based on previous PLRs which can only be relied upon by the individual to whom they were issued. Take the PLR that was included in the previous post, send it to your custodian, and then ask your custodian why they are making the statement that you must makea full annual distribution.However, the point that you have to remember is that regardless of what the custodian states,it is always up to you to justify the plan and it’s design if you get questioned by the IRS.2008-10-14 02:56, By: gfw, IP: [216.80.125.206]

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