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72t divorce rules

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ByTony D

L1: 72t divorce rulesHello-
I have gathered from previous posts that a person is allowed to change their 72t amount after divorce. However, my question is how long do they have after the assets are divided to make that change? Anotherwords, do they have to make the change immediately or can they keep the payment amount the same for 4 months and then change it? Any help would be appreciated.
Thanks
TD2005-04-20 12:13, By: Tony D, IP: [209.74.135.130]

L2: 72t divorce rulesHello Tony:
So much of the 72(t) issues vis-a-vis divorce are fact & circumstance driven and the only hints we have from the IRS are in the form of PLRs. I suspect that waiting 4 months is not a big deal; then again, no one is absolutely sure.
I suggest you seek professional help on htis one.
TheBadger
wjstecker@wispertel.net
2005-04-20 12:34, By: TheBadger, IP: [66.250.23.21]

L2: 72t divorce rulesHi TD:
I concur with TheBadger that you need professional help on this one. But here are twoquestions I think might come into play for you:
1. Did the events occur in the same or over two calendar years? If done in the same year it will be infinitely easier to accomplish.
2. What is the time element between spliting out the account(s) between partiesand making the change in 72(t) distribution amounts? There must be a reasonable time element to make the changes since new accounts have to be established and funds transferred around.
OK. I know “reasonableness” isn’t a word often used with the IRS, but my experiences with the “Enforcement Division” has been good and friendly.
Jim2005-04-20 12:47, By: Jim, IP: [70.184.1.35]

L2: 72t divorce rulestd
possibly the biggest element of your decision is the divorce decree.
how are the assets divided? what is the date of the decree? any other decreed factors?
this is a tax problem and a legal problem.
charlie2005-04-22 12:02, By: charlie, IP: [67.226.239.20]

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