72t delayed withdrawls

L1: 72t delayed withdrawlsIs there a time limit I have before I have to start withdrawing from a 72t after retirement? Also do I still have to wait the 5 years from the time I start distribution or does it start on the date I rolllover over to an IRA?2005-02-14 15:39, By: pacificlou, IP: [4.21.3.3]
L2: 72t delayed withdrawlsHello Pacificlou:
No time limit whatsoever other than you must commence minimum distrubitons at age 70 1/2.
TheBadger
wjstecker@wispertel.net
2005-02-14 15:43, By: TheBadger, IP: [66.250.23.21]

L2: 72t delayed withdrawlsYou did not provide enough information for a concise answer for your particular situation, so let me toss a few items out for your consideration.
Sounds like your may still have a 401(k) or other qualified plan at work. If you retire during or after the year you reach age 55, you can withdraw funds from these plans without a 10% penalty. When you do an IRA Rollover, then you come under the IRA rules and the age is 59 1/2 to avoid the 10% penalty. 72(t) is designed to withdraw funds without the penalty should you retire before age 55 for the qualified plan or 59 1/2 for the IRA.
You can start a 72(t) whenever you are ready to withdraw money and you have it all set up with your custodian.
Assuming you have done an IRA Rollover and you are younger than 59 1/2 and you start distributions under 72(t), then you must continue distributions until BOTH age 59 1/2 AND 5-years of distribuions are accomplished. Timing starts with the date of the first withdrawal and ends 5 years later, and you are age 59 1/2. Use the calculators at the front of this web site for start and end dates.
Good luck.
Jim2005-02-14 16:08, By: Jim, IP: [70.184.1.35]