72t, do I have to recalculate every year?

L1: 72t, do I have to recalculate every year?Lets say I use the calculation and come up with 40,000 a yr starting at 52. Can I take out the same amount to 59 1/2 or do I have to recalculate every year and receive a different amount the next yr till age 59 1/2? Also, if I take early retirement on my pension, do I have to pay 10% penalty on that? The 40,000 would come from a 401k converted to an IRA. Thanks2003-01-20 07:21, By: bonusmon, IP: [127.0.0.1]
L2: 72t, do I have to recalculate every year?Hello bonusmon:
You didn”t tell us which method you intend to use. If you use the required minimum distribution method; then, yes, you would be required to recalculate every year. Conversely, if you use the amortization or annuitization method, then, no, you would expressly not recalculate as these are one-time computational methods.
Regarding your pension, defined benefit plans are not covered under IRC 72(t) but instead by IRC 72(q) and the rules are very similar but not the same. Short answer, most likely your pension would be similarly exempt from the 10% penalty.You should check with the plan administratoror your employee benefits people.
TheBadger
wjstecker@wispertel.net

2003-01-20 08:00, By: TheBadger, IP: [127.0.0.1]