72t methods

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L1: 72t methodsI’m 56 and will be 57 next year. Next year I will be receiving a lump sum from a defined benefit and cashing out my 401k and will no longer be employed. There is no place to put funds that are insured for more than 250000. So if I have to spread money to 3or 4 different institutions do I need to sepp on each or how does that work.2008-12-11 12:25, By: pita, IP: []
L2: 72t methodsSTOP!!! TAKE A BREATH !!!Now research this site and get a tax/financial consultant. Some CPAs are knowledgeable in the areas discussed below.1. Since you are over 55, you can probably take distributions from your 401-K without be subject to the 10% “early distribution penalty” which applies only to IRAs before 59 1/2 ( if 55 or older). See if your plan allows this.2. Ask your HR or payroll department if there is EMPLOYER COMPANY STOCK in your 401-K, and or your pension plan. If so, this is called NUA ( “NET UNREALIZED APPRECIATION” STOCK), and is eligible for a special tax provision which could save you a fortune in taxes. Ask them for the COST BASIS.3. Meet with an experienced advisor to discuss all of the above.4. As a last resort, consider SEPP 72-T plan. 5. A broker or investment advisor can help you select investments appropriate for your RISK TOLERANCE.2008-12-11 14:20, By: dlzallestaxes, IP: []