72T distribution change

L1: 72T distribution changeI began my 72t by drawing a small amount while was employed. I have been layed off and am at age 58. I need to draw more money from my 72t. Can I do that without busting my 72t?
Thanks2006-11-03 13:56, By: Danny L, IP: [66.169.124.88]

L2: 72T distribution changeShort answer… no. If you take more than the planned amount, you will bust the existing plan and owe the 10% penaltty on all previous withdrawals plus interest on past due penalties.2006-11-03 14:08, By: Gfw, IP: [172.16.1.71]

L2: 72T distribution changeI don”t think that Gfw is exactly right. You said that you are only drawing a small amount from your 72t. If you are not drawing the ”maximum” that you can draw, you can set up another 72t. Just be mindful that the 59 &1/2 or 10 years rule still exists. The best thing to do is talk to your financial advisor…he/she will know best about your situation.2006-11-04 12:55, By: lopes, IP: [67.8.42.194]

L2: 72T distribution changeRegardless of the amount being taken from the SEPP, the planned payment for that SEPP plan may not be increased.
If there are other accounts (IRA,401(k), etc.)that were previously excluded from the SEPP universe and the previous calculations, then those other accounts may be used.2006-11-04 12:59, By: Gfw, IP: [172.16.1.72]

L2: 72T distribution change ” The best thing to do is talk to your financial advisor…he/she will know best about your situation. ”
Yeah, right.
Listen to Gfw !!
2006-11-06 07:27, By: GT, IP: [24.145.246.83]

L2: 72T distribution changeWhat date did you start taking your distributions ? What balance was your calculation based on ? How much did you witdraw each year ? How much do you now need per year ?
If you started during 2006, then you may be able to increase your withdrawal to make up for the “shortfall” thru 10/31 when you compare the cumulative amount to the ANNUAL CALCULATED AMOUNT.
If you started in 2005, it may pay to “bust” the plan, and pay the penalty. Then determine if it makes sense to start a new SEPP plan for 2006, or starting 1/1/2007, or find a way to provide cash flow until you are 59 1/2, at which point there is no penalty. You could take the annual 2006 amount now, and then the same amount for 2007 in January.
Also, if you are withdrawing funds from you 401-k, there is no penalty once you are > 55 and separated from service, which is different from IRA SEPP plans.
Obviously, you need a professional who can advise you on these, and possibly other, alternative approaches.2006-11-13 20:50, By: dlztaxes, IP: [4.175.9.235]