72t final reqired distribution when turning 59 1/2
L1: 72t final reqired distribution when turning 59 1/2This question is regarding an existing 72t plan. My first distribution was on 02/07/2003 under the fixed amortization method. I switched to the required minimum distribution method on 11/16/2009.I have taken all the required minimumdistributions in mid November, except in 2012 I took it in early December. I have taken 1 distribution each year. My birthday is 05/30/1957.This year when I take my distribution,it willbe my final distributionunder the 72t plan.How do I compute the amount for this final distribution? Do I take a full amount or a prorated amount?
2016-05-20 23:13, By: 72t on the net, IP: [18.104.22.168]
L2: 72t final reqired distribution when turning 59 1/2For your final year of the plan you have a choice of distributing the full annual amount, a pro rated amount of 11/12 of the full annual, or nothing. With these 3 choices, your decision can reflect how much you want to be taxed on this year. Starting in December your plan is over and youcan take out as little or as much as you wish. However, in order to avoid reportingcomplexity from having both 72t and non 72t distributions in the same year,it would be best to avoid takingboth 72t distributions prior to December and non 72t distributions in December.2016-05-21 22:40, By: Alan S, IP: [22.214.171.124]
L3: 72t final reqired distribution when turning 59 1/2Alan,
Thanks for the help. It is just what I need to know. Do you know if any tax form needs to be filed when final distribution is taken. Federal form 5329 is the form I am concerned about. I don’t think it needs to be filed but I would appreciate you thoughts.
Thanks2016-05-24 16:44, By: 72t on the net, IP: [126.96.36.199]
L4: 72t final reqired distribution when turning 59 1/2If your custodian codes the 1099R with code 1 in Box 7 as most do, you have to file a 5329 each year overriding the code 1 with exception code 02 on the 5329. The final year is no different, but as far as any unique reporting or forms that report the end of your plan, there are none.2016-05-24 17:06, By: Alan S, IP: [188.8.131.52]