72t Distribution Plan Plus Additional Withdrawl?

L1: 72t Distribution Plan Plus Additional Withdrawl?Hi. Several months ago I started a 72t withdrawl plan from my IRA through
E*Trade, and so far, so good. They take out the required amount every month.
Now, I am wondering if I can also take a one time “premature” distribution from the same IRA account and pay the 10% penalty for the amount taken out prematurely, without this having a negative impact with the IRS on my 72t withdrawl program? The amount I would be taking out would be less than $10k and would not have a negative impact on the overall balance of my IRA, nor would it put me in a position for my IRA to “go bust”.
Thanks much!!
2005-08-22 17:35, By: Scott, IP: [68.184.28.77]

L2: 72t Distribution Plan Plus Additional Withdrawl?The short answer is no.
While you don’t say why you want the extra withdrawal, if you take it, you pay the 10% on the total withdrawals that you have taken from the SEPP. It really isn’t a matter of whether your IRA goes bust as much as it would be that you busted your SEPP!
Consider other sources of the funds, or since you just started the SEPP merely calculate the penalty and then decide how much you need the additional withdrawal. There must be other sources for the needed cash.2005-08-22 17:45, By: Gfw, IP: [172.16.1.77]

L2: 72t Distribution Plan Plus Additional Withdrawl?Scott,
I wish I had been as smart as you as ask questions before I took an additional withdrawal. I just assumed I could and called Fidelity and told them I wanted 15,000. They didn’t hesitate. I assumed once again that they were looking at my records and knew that I was taking periodic paying. They sent me a check minus enough to pay the taxes and penalty and I paid off my car. I was really happy with Fidelity. Then about a week later I got a letter in the mail saying my equal periodic payment plan had been canceled. After calling them, they informed me that it wasn’t there responsibility to tell me about it, it was mentioned in the fine print on the agreement I signed. I now have to amend my taxes for last year and pay penalty on all the money up until current. What’s worse, I can’t start a new 72t until the beginning of next year. Since I am partially living off of this money, I will have to take some more out between now and then and pay more penalty. I am unhappy about this. I think Fidelity should have to pay this. I am going to talk with my lawyer about a suit against them. This is ridculous. They cost me about $2000.00 plus.
2005-08-27 01:00, By: Keith, IP: [205.188.117.9]

L2: 72t Distribution Plan Plus Additional Withdrawl?SORRY, BUT I THINK YOU DUG YOUR OWN GRAVE.
WHY DIDN’T YOU ASK YOUR TAX ADVISOR OR FINANCIAL ADVISOR BEFORE MAKING THE EXTRA WITHDRAWAL ?
WHY DO YOU THINK THESE ARE CALLED “EQUAL PAYMENTS” ?
WHY WOULD YOU THINK YOU COULD JUST TAKE EXTRA MONEY WHENEVER YOU WANTED TO ?
DON’T WASTE YOUR MONEY ON AN ATTORNEY. NEXT TIME GET COMPETENT ADVICE BEFORE DOING ANYTHING FINANCIAL OR TAX RELATED.
POSSIBLY A DIFFERENT FINANCIAL FIRM OR A DIFFERENT REP AT FIDELITY MIGHT HAVE BEEN ASTUTE ENOUGH TO HAVE ASKED THE RIGHT QUESTIONS, OR CHECKED YOUR SITUATION, BUT THEY ARE ONLY REQUIRED TO EXECUTE YOUR ORDERS OR REQUESTS, NOT TO STOP YOU FROM DOING WHAT YOU WANT TO DO.
AS A TAX AND FINANCIAL ADVISOR, I’VE TRAINED MY CLIENTS TO CALL ME BEFORE THEY DO ANYTHING. ONE CLIENT TOOK IT TO AN EXTREME. HE NOT ONLY CALLED ME TO DECIDE WHETHER TO GET MARRIED BEFORE OR AFTER 12/31, BUT ALSO A COUPLE OF YEARS LATER HE ASKED WHEN HIS WIFE SHOULD TRY TO GET PREGNANT. (UNFORTUNATELY SHE DELIVERED ABOUT 1/7. I SUGGESTED A POGO STICK OR TRAMPOLINE FOR BOUNCING AROUND AFTER XMAS, BUT IT DIDN’T HELP.)2005-08-27 15:15, By: dlztaxes, IP: [4.175.9.14]