72t distribution increase at age 59 1/2

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L1: 72t distribution increase at age 59 1/2I am confused about when I can increase my 72t SEPP withdrawal amount after age 59 _. Using the first modification date calculator it shows April 30 2010 (my date of birth is 10/29/1950). I have two IRA accounts and will be past the 5 full years minimum on both before turning age 59 _. Reading the “Revenue Ruling 2002-62” part I section 1 (c) seem to indicate that I will be penalized if I understand this: (c) Section 72(t)(4) provides that if the series of substantially equal periodic payments that is otherwise excepted from the 10-percent tax is subsequently modified (other than by reason of death or disability) within a 5-year period beginning on the date of the first payment, or, if later, age 59 _, the exception to the 10-percent tax does not apply, and the taxpayer’s tax for the year of modification shall be increased by an amount which, but for the exception, would have been imposed, plus interest for the deferral period. Also my financial advisor tells me that I can’t make a change in the distribution amount in the same year I turn 59 _.2010-02-09 22:11, By: Confused, IP: [63.196.195.61]
L2: 72t distribution increase at age 59 1/2A SEPP plan ends at the later of 5-years or age 59.5. You state that you will meet the 5-year requirement before you reach age 59.5. If the plan then ends at 59.5, what is creating the confusion? >>Also my financial advisor tells me that I can’t make a change in the >>distribution amount in the same year I turn 59 _.Ask you financial advisor for thesection of the Internal Revenue code, IRS Notice or Revenue Ruling that defines this limitation – I haven’t seen it and I would love to have the documentation that defines it. 2010-02-09 22:43, By: Gfw, IP: [216.80.125.206]

L3: 72t distribution increase at age 59 1/2One of your options to increase distributions allows you to take out your full annual 72t distribution prior to 4/30. If you are taking monthly distributions now, that would increase your payout from 4 months to 12 months.Of course, after your plan ends, you can take out any amount you wish (financial advisor is wrong). Therefore, the only question is whether you need the money in the next 2.5 months or can wait until May. Note that you cannot take an amount between 4 months and 12 months worth. It must be one or the other.2010-02-11 00:30, By: Alan S., IP: [24.116.165.60]