72t Change

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L1: 72t ChangeTwo questions re: change to 72t. Question 1….72t began in 2001, but due to large depletion of account balance, client changes the amount in mid 2002, before the new reg that allowed aone time change (his recalc method was not done in compliance with the new reg). Any exception to 10% penalty here…..I don”t think so.
Question 2….assuming 10% penalty applies, is the amount for entire distribution, up to the point of change, i.e. 2001 distributions plus 2002 up to the time of change, reported on 2002 return, Form 5329?

Thanks,
Steve H.
2003-04-03 20:11, By: Steve, IP: [127.0.0.1]

L2: 72t ChangeOn your first point, I would agree since the change occured prior to the issuance of 2002-62. However, depending on the amount it might also be possible to request a PLR from the IRS requesting mercy since the change would have been allowed later in 2002 – just my thoughts.
If the 10% is due, then it is on the full amout on the distributions since the initial start date.2003-04-04 04:31, By: Gfw, IP: [127.0.0.1]