72t distributions rolled back
L1: 72t distributions rolled backI am 49 and lost my job a while ago. To survive I was thinking of starting a 72t from my IRA. I understand I will be locked into payments until age 59 1/2. I was wondering if I do find a job can I take my 72t distributions lumpsum each year then to a 60 day rollover into another IRA?
Thanks2009-10-08 16:50, By: PTS, IP: [184.108.40.206]
L2: 72t distributions rolled backNo. Rollovers to another IRA are not allowed.
You are allowed to change your method, which would reduce your distributions, probably by 50%.
You should consider setting aside as much of your IRA as possible to be separate from the account related to the SEPP 72-T, so that you can be flexible in supplementing these distributions periodically with others that would be subject to the 10% penalty.
Also, look into the other exceptions to the 10% penalty that you may be eligible for without even setting up a SEPP 72-T, such as health insurance premiums, medical expenses, tuition, etc. Also, as you may know, the first $ 2,400 in unemployment benefits in 2009 are not taxable, and you are eligible for the 65% federal subsidy under COBRA for 9 months. These 2009 programs may be continued. Keep tuned to the news.
2009-10-08 17:37, By: dlzallestaxes, IP: [220.127.116.11]