L1: 72t distributioniIf I started a 72t in September 2011 I would like to know if the annual distribution is 65000 , how would it be distributed the first year of 2011 with only 4 months left in the year. Do you take a lump sum or do you split up the annual distribution for
4 months. Thanks in advance2011-08-27 17:01, By: Hobo4life, IP: [126.96.36.199]
L2: 72t distribution
Normally you could do either the full annual amount or 4/12s of the annual amount.
What is your date of birth? Will your plan end at age 59.5 plan or a 5 years?
2011-08-27 17:07, By: Gfw, IP: [188.8.131.52]
L3: 72t distribution
If we were to assume that your annual calculation of 65,000 is correct, these are the only requirements:
1) First distribution of any amount must be taken in Sept assuming a Sept start date and valid interest rate no higher than the July rate
2) Total distribution taken by the end of the year must total either 65,000 (full annual) or 21,666 (pro rated for 4 months).
In 2012 you could use any distribution pattern you wish as long as you distribute exactly 65,000 in 2012.
2011-08-27 17:17, By: Alan S., IP: [184.108.40.206]
L3: 72t distributionMy birthdate is feb I am 55 years old2011-08-27 17:38, By: Hobo4life, IP: [220.127.116.11]
L4: 72t distribution
Then you are dealing with a 5-year plan. Make sure that you take a look at our “First Modification Date” calculator and the calculated 1st modification date.
Also make sure that you understand that during the 5-year period ending on that 1st modification date, that you take both a minimum and a maximum of 5 annual distributions.
In a SEPP plan thare are really only three important dates… 1) date of birth; 2) date of the 1st distribution; and 3) the 1st modification date.
2011-08-27 18:28, By: Gfw, IP: [18.104.22.168]
L5: 72t distribution
BEFORE you set up a SEPP 72-T plan, did you or will you retire or separate from service in 2011, anddo you have a 401-K from that employer ?
If so, if the plan allows partial withdrawals, then you probably do not need to set up a plan. See the other postings on this wensite that explain why.
Also, if you have an employer retirement plan with eomployer stock, yhen ask your company’s plan administrator about NUA provisions, and the company cost basis for those shares in your account, and read the NUA postings on this website.
2011-08-27 19:38, By: dlzallestaxes, IP: [22.214.171.124]