Recalculating my 72t

L1: Recalculating my 72tI am 57 years old and have been taking my 72t distributions for 6 years, based on the amortization method. I would like to drop my distribution down by performing the one-time minimum distribution recalculation. If I recalculate am I required to wait another 5 years before making any changes or can I make changes at 59.5?2006-12-13 14:04, By: Cory, IP: [71.195.228.29]
L2: Recalculating my 72tCory,
My understanding is that you can do the one time change from Amortization toRMD method while your 72t is running, and it has no effect on the already calculated minimum length of time that your 72t plan has to run to meet the “at least 5 years”, and also until “at least 59.5 yrs old” (In your case the 59.5 age will complete your 72t). There is a related post from MATT on 10/25 that discusses the timing of the changeover to RMD that you might want to check. The tricky part of what is required to be taken out as part of the SEPP plan in that final year as you pass the age of 59.5 is also covered in many earlier posts. Once you clear the 59.5 hurdle, since you have already also covered more than the 5 year minimum, you can then take out: more, less, or no money at all from your IRA for the rest of that year, and thereafter. You no longer have to worry about the 10% penalty on those withdrawals, and from what I have read, the custodian will probably give you two 1099-R”s in that final stub year if you also take out money after the 72t plan ends, with the latter money listed on the1099-Rcoded as a regular distribution, because of your age and their knowledge that you fulfilled the 72t plan when the “after age 59.5” moneywas taken out.
KEN2006-12-13 15:38, By: Ken, IP: [68.160.36.227]

L2: Recalculating my 72tIt is also good that you are doing the one time RMD switch on a calendar year basis. Trying to do it mid year is iffy and replete with pitfalls and the potential of having to justify your calculations to the IRS.
This way, just use your 12/31/06 account balance for determining your RMD distribution for 2007. As before, you can take that distribution monthly, quarterly, etc as long as the correct total is distributed in 2007 and 2008. The remaining issue would be getting your final stub year distribution correct, probably in 2009.2006-12-14 16:40, By: Alan S., IP: [24.116.66.98]