72T Question

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L1: 72T Question
DOB 6/7/56
I have calculated 72T distributions using each of the three methods and all will leve me short of what I need to take for living expenses next your. Can you take more than the calculated amounts without the 10% penalty as long as they are equal distributions?

2011-12-03 09:02, By: Frank, IP: []

L2: 72T Question
Sorry, but short answer… no. You may want to consider making up the difference with part-time employment.
Another item to consider, unless you have assets other than an IRA, it may also not be wise to allocate 100% of your IRA to a SEPP in case of emergencies, etc.
2011-12-03 10:25, By: Gfw, IP: []

L3: 72T Question
If you start your plan this year, you can take out a full 12 months. You can then save 20% of that amount to subsidize your 72t plan distributions in the next 5 calendar years. Of course, you would have that extra full distribution
this month to pay taxes onby next April, but that extra 20% per year may be enough to get you through your plan unscathed.
In the first calendar year of your plan, you have the choice of taking out a pro rated amount by the month (1/12 of annual if you start in Dec), or the full annual amount. That’s why you have the above option.

2011-12-03 23:00, By: Alan S., IP: []