72Q v 72T

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L1: 72Q v 72THave enjoyed reading your posts and the excellent discussions that ensue. I’m retired and have a pension and health insurance. Am looking to supplement my pension for basic standard of living expenses. Haven’t started my new SEPP yet but plan to in the first half of this year (2017).
Born in April 1965.
Have a defered annuity account through Fidelity sitting at about $600K now. (also have Roth and Trad IRAs).
My main question at this time is simple — the conversations here have been largely related to IRAs and 72T SEPP. But I’m thinking of tapping into my deferred annuity, aka a 72Q SEPP. How closely are the answers to the questions here on 72T related/comparable to the 72Q?
Thanks in advance for your insight!2017-02-13 04:03, By: Eli, IP: []

L2: 72Q v 72T72t and 72q are about the same – both are subject to the same rules.
The big difference is in the taxation if there is a basis (your premiums into the annuity). Using 72t, the basis is returned prorata as a part of each withdrawal. In 72q, each distribution is treated as a withdrawal and each distribution is 100% taxable until all growth/interest in the contract has been removed.2017-02-13 11:13, By: Gfw, IP: []