L1: 72t calculationsI have been told by my accountant that I can take out more than the section 72t calculation would be but that I would have to pay the 10% penalty on the excess.
example section 72t amount calculated 40,000
age 55 take out 50,000 would have to pay 10% penalty on 10,000
age 56 take out 60,000 -10% penalty on 20,000
is this correct? The way I read the info would be that I break the 72t calculation and would be penalized on the full amount each year.
2017-08-31 11:52, By: namehij, IP: [126.96.36.199]
L2: 72t calculationsCHANGE ACCOUNTANT !!!!
You would bust your SEPP the first year that you exceeded the $ 40,000, and would owe the 10% penalty on the TOTAL DISTRIBUTIONS FROM INCEPTION. In other words, if you took only $ 40,000 for 4 calendar years, and took an extra $ 100 or $ 10,000 in year 5, you would owe $ 16,000 ($40,000 x 4 years x 10%) in penalties, in addition to the income taxes that you had already paid for those first 4 years.2017-08-31 15:41, By: dlzallestaxes, IP: [188.8.131.52]