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first year distribution

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ByJeff

L1: first year distributionI will retire on July 1, 2007. My IRA funds will be in my account by September 1, 2007. I will use that account balance for my 72(t) calculation.I plan to withdraw 25% of the yearly withdrawal amount in the last three months of 2007. Is this ok? Thanks in advance.2007-04-11 22:05, By: Jeff, IP: [166.87.255.133]
L2: first year distributionYes, you can either pro rate the first year amount or take 100% of it. If you want to use 25%, do not order the distribution prior to 10/1. That will also provide some time to make sure that the rollover is completely transferred to your IRA including any trailing dividends etc. A deposit to your 72t IRA after you initiate your planwill bust the plan.
If you have enough funds to partition your IRA into the 72t and non 72t accounts, use the partitioned account to fund the amount you want for your 72t. The original IRA rollover can then receive late transfers, etc and serve as your emergency funds without affecting your 72t IRA account.
2007-04-12 16:26, By: Alan S., IP: [24.116.66.98]

L2: first year distributionThanks, Alan, for the reply. I wasn”t clear on when to take the distribution.
Regards, Jeff2007-04-13 01:32, By: Jeff, IP: [166.87.255.131]

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