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Irregular Payment Frequency & Documentation

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Byrockbob

L1: Irregular Payment Frequency & DocumentationI initiated a 72t distribution in 2003 and have taken single annual payments in 2003, 2004 and 2005. For 2006, I would like instead to take my payments in 5 incrementsand each of differing amounts…but totaling to the same total dollar figure for the year. From previous posts this seems legit…or should I keep the amount and frequency of each of the 5 payments regular?
Also a big thanks to your recommendation to documentone’s 72t. I received a nice packet from the IRS at Christmas asking for payment of a 10% premature distribition penalty plus interest for my 2003 distribution….or a letter of explanation.The documentation form I filled out and kept in my file sure came in handy in preparing my reply!! Thanks.2006-01-10 12:23, By: rockbob, IP: [65.40.205.169]

L2: Irregular Payment Frequency & DocumentationThe withdrawals in any given year need not be level as long as they add up to the annual amount.
BTW – Congratulations on keeping the good docs! Please keep us posted as to the final outcome with the IRS and their request for information.
2006-01-10 12:29, By: Gfw, IP: [172.16.1.72]

L2: Irregular Payment Frequency & DocumentationI also received a Christmas letter from the IRS about 2003. Anyone else? 2006-01-10 13:00, By: tedtax, IP: [68.160.158.38]

L2: Irregular Payment Frequency & DocumentationAfter 5 months of waiting, on Saturday I received my “no change” letter from the IRS for their challenge of my 72t initiated in 2003. Since the IRS challenge was by correspondence, one of the difficulties in preparing my reply to their “request for 10% premature distribution penalty plus interest” was what and how much to say. The example documentation form you provide was very helpful in providing the key items that constitute a correct 72t program. 2006-05-30 08:19, By: rockbob, IP: [65.41.65.93]

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