72t

L1: 72tI just got laid off in 2010 at age 56, my wife is age 58. I have 2 accounts 1 401k with fidelity that I contributed to this year 2010.(does the fact that i contributed in 2010 lock me out of a 72t for 2010?)The other is with Schwab that is a IRA rollover from a prior employer 401k/pension/profit sharing. I got info from 1 source that said this rollover was not eligible for a 72t but that seems to be inaccurate. I have used 72t calculators for these accounts. I will most likely take early retirement and start drawing equal amts for 5 years in 2011 anyway. 1 Should I work with a tax advisor now? I am fairly savvy on taxes2 Is there any truth to the traditional IRA not being eligible?3 Does the fact that i contributed in 2010 lock me out of a 72t for 2010?4 If the 72t with a 3.25% midterm max rate calculates a fixed dollar amount $xK do I stay with the dollars or recalculate every year based on balances in both accountssay Dec 31 and current midterm interest rate?5 any advice/tips are appreciatedDougie2010-03-25 21:32, By: Dougie, IP: [71.170.200.172]
L2: 72tLet’s start with the 401(k) plan. Check with your plan administrator (typically your employer) to see if they allow partial distributions following termination of employment (at age 56)directly from the 401(k) plan – if the answer is yes, then you don’t need a SEPP plan as you can do partial withdrawals free of the 10% penalty tax. Any contribution made in 2010 is immaterial. There is no reason that I can think of as to why your traditional IRA would not be eligible for a SEPP. Before you start thinking about a SEPP, get the answer above. If your plan doesn’t allow partial withdrawals, then please return and start a new thread and we will deal with the SEPP information.Good luck 2010-03-25 22:55, By: Gfw, IP: [24.148.10.164]

L3: 72tOnce you start a SEPP 72-T plan, and make the initial calcualtion of the ANNUAL DISTRIBUTION, that will be the same figure every year ( unless you prorate the first year based upon the number of months), unless you change methods ONCE, which we usually do not recommend for various reasons.You cannot increase or decrease your annual distributions based upon changing needs or the value of your SEPP IRA UNIVERSE.2010-03-26 00:09, By: dlzallestaxes, IP: [173.49.30.37]

L4: 72tThanks for the quick response. I called fidelity before the post and they told me I could take it all without penalty but frankly the person was new and I thought they didnt know. I’ll call back and see about partial..I know it is usually all or none butthey might be able to split employer match out.hope this works that is good newsDougie2010-03-26 02:13, By: Dougie, IP: [71.170.200.172]

L5: 72tRather than contacting Fidelity, contact your former employer’s HR department and ask them about taking partial distributions from the K-plan. The Plan Document will tell you if you can take partial distributions. Have HR send you a current copy of the Plan Document for your records anyway.Jim2010-03-29 15:20, By: Jim, IP: [70.167.81.119]