72t annual payments
L1: 72t annual paymentsI will be starting a 72t later this year (~4/09), do I need to receive the same total payment for this partal year (2009) as I receive for the year 2010 and so on? Or do I proratethe total annual dollar amount by the active monthsthis year – 2009? Thanks in advance for any help.
2009-02-27 03:51, By: RLB, IP: [18.104.22.168]
L2: 72t annual paymentsIn your first stub year, you have a choice between taking either the full annual payment or pro rating based on thenumber of months starting with the inception month of the plan. In your case, this would be either 100% or 75% of the annual calculation. Since you do not have to make the final decision until December, you will have a better feel how adequate your annual amount will be over the full term of the plan. If there is any concern that you may need more funds, taking the extra 3 months this year will give you a slightpadding against having to bust the plan down the road.2009-02-27 04:11, By: Alan S., IP: [22.214.171.124]