72 T Question
L1: 72 T Question
I have been receiving two 72t distributions since 2002. One from my IRA that equates to $4800 monthly and the other from an annuity (IRA) that I receive a yearly distibution of 17,500. My question is can Ireceive additional distributions from my annuity
knowing that I will get hit with the 10 percent penalty for exceedingmy 72k limit? I am willing to pay the penalty as long as I am not violating any laws. My financial adviser says that I cannot do anything else with those accounts once I starttaking distributions.
It is not clear to me if he is trying to make me keep my assets in his accounts or whether this istruly the rule.I could use the extra cashto pay for multiple daughters weddings in the last year but don’t want to break any rules. I am assuming that I
would have relief on the $4800 + 17,500 and would only pay penalties on those monies above $72,000 or the original distribution annual amount. Your thoughts are appreciated.
2011-09-14 01:20, By: JohnnyRob, IP: [220.127.116.11]
L2: 72 T Question
I assume that these are 2 separate SEPP 72-T plans, each with its own calculation. If you take $2 or more extra from either plan, then you will be subject to a 10% penalty on ALL CUMULATIVE DISTRIBUTIONS from that plan from the beginning. No penalty on the
other plan if you continue the same annual distributions.
Are the amounts just your rounded figures for the posting, or did the amounts just happen to come out even, which is rare ? Otherwise, you may have busted your plans from the beginning.
The $ 17,500 might be the annual annuity in your IRA, but this may not be, and probably is not and has never been, the SEPP calculated amount.
Sounds like you may have significant issues, and should meet with a tax advisor experienced in SEPP 72-T plans.
If you give us your date of birth, balances on which each plan was started, date of first distribution from both plans, then we might be able to check what you have done.
2011-09-14 01:57, By: dlzallestaxes, IP: [18.104.22.168]