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72t Problem

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Last Updated On
ByAlan

L1: 72t ProblemI started a 72t at age 56. 1,500,000 was dumped into a single IRA account.211,000 was to be moved out BEFOREthe 72t was to be begin. Therefore the 72t was supposed to be on 1,289,000.

The broker started the 72t just before the 211,000 came out so the 72t was processedon 1,500,000 and not the agreed upon 1,289,000.

There has been only one check issued. Can this be corrected? I”m not getting anywhere with the broker.

What can I do to get it based on 1,289,000 without penalty.2008-02-26 06:39, By: Alan, IP: [66.166.255.74]

L2: 72t ProblemHello Alan:
I can think of three choices:
1. If less than 60 days have transpired since the one withdrawal; then simply rollover that withdrawal back into the same account and, so to speak, start all over.
2. If more than 60 days have transpired since the one withdrawal; then declare, so to speak, that withdrawal as not part of the SEPP plan (plan on paying the 10% surtax) and again, start all over.
3. Live with your SEPP plan based on $1.5mm.
TheBadger
wjstecker@wispertel.net
2008-02-26 07:39, By: TheBadger, IP: [72.42.66.180]

L2: 72t ProblemThanks…One of those willwork!2008-02-26 14:17, By: Alan, IP: [66.166.255.74]

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