72t then disability

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L1: 72t then disabilityIhave currently taking SEPP distributions an am 54 yrs old. I am about to start recieving Social Security Disability benefits.If I code my72tIRA for disabilty and begin to take disabitly distributions, will I owe retroactive penalties and interest or does disability nullify the 72t arrangement?
2008-05-14 11:05, By: Darth Barth, IP: []

L2: 72t then disabilityHello Darth:
I am going to presume that your receipt of SSDB is sufficient to also qualify you for disability under the IRC (if there is any question I would suggest you seek professional advice). If so, you will owe no retroactive penalties or interest as disability or death are the only permissible reasons to modify a SEPP plan.
Regarding “coding” I do not really know what you are talking about. Your trustee is responsible to issue you a 1099R and put a code in box 7 called a reason code. Whether your trustee will listen to you is entirely a different matter. In any event, maintain good records regarding your disability and there should little to no difficulties.
2008-05-14 14:10, By: TheBadger, IP: []