72T has ended
L1: 72T has endedMy 72T age of 59-1/2 was reached in April of this year, and my time of participation has been well over 8 years as well. I’ve now complied with both aspects of my 72T.
I have stopped distributions this month as I am permitted. Due to my work situation as well as medical issues, I have been unable to work since June. I have take a handful of distributions since then that are obviously not part of my now-expired 72T.
When doing my 2012 returns early next year, I will have the 1099s needed, but want to know if there’s any notations or documentation I will need besides the 1099 which will not reflect a full 12 months of SEPP for 2012. Does the IRS simply look at your age and say “Well, he’s 59-1/2, so he’s good to go.”, or do I need to include something else with my returns.
I’ve contact my custodian for the IRA and they said the 1099 will be a single document with information about the SEPP I took, and separate information about the non-72T distributions taken after it expired.
Thanks for any and all answers.2012-09-21 17:45, By: Anderson, IP: [184.108.40.206]
L2: 72T has endedUnfortunately there is no consistency as to what any specific custodian will do, and no definitive guidance from IRS.
Some will include all distributions for 2012 in a single 1099-R, and a code 1 showing that they are taking no responsibility on whether or not any exceptions apply. Other custodians will thankfully split the distributions into 2 separate 1099-R forms for pre and post 59 1/2, and code the latter with a 7 code.2012-09-21 18:08, By: dlzallestaxes, IP: [220.127.116.11]
L3: 72T has endedThe IRS has provided guidance, but with respect to 72t plans, very few custodians follow that guidance.
Most custodians will provide two 1099R forms for the year you reach 59.5 and took distributions both before and after 59.5. The 1099R formswill likely containa 1 or 2 coding on the pre 59.5 distributions and a 7 code for post 59.5 distributions. Certain custodians may differ.
But in your case, what you need to do is simple. For any 1099R you receive with the 1 coding, file a 5329 to claim exception code 02 for the 72t plan. For any 1099R forms containing code 7, leave as is. There is no specific notification you need to give to the IRS that your plan has ended.
2012-09-21 23:26, By: Alan S, IP: [18.104.22.168]