72t cancelation

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L1: 72t cancelation
If I have been receiving 72t distributions can I cancel the 72t without paying penalties if I have not reached 59 1/2 or 5 years in distributions.
2011-08-15 14:41, By: jojo, IP: []

L2: 72t cancelation
You can’t really cancel the plan – the common terminology is that you would bust the plan and owe the 10% penalty, plus interest on any distributions received while the plan existed.
If using teh amortization or annuity methods, you could consider switching to the minimum distribution method and reduce the annual distributions.
2011-08-15 14:48, By: Gfw, IP: []

L3: 72t cancelation
Can I switch my investment vehicle instead of busting the plan.
2011-08-15 15:20, By: jojo, IP: []

L4: 72t cancelation
Yes, you can change your investments, but it is best to avoid partial transfers because it adds risks of errors and increases IRS scrutiny. Most SEPP plans use brokerage IRA accounts where you can change investments as
often as you wish.
If you want to change IRA custodians, then you should transfer the entire IRA to the new custodian. Transfers of only part of an account increase risk, and the IRS has actually busted a couple plans for doing partial transfers to a different custodian.
Probably best if you defined what you mean by “investment vehicle”…..
2011-08-15 16:49, By: Alan S., IP: []

L5: 72t cancelation
Thank you for the help.
2011-08-15 17:49, By: jojo, IP: []