L1: 72T timingHello, My question is: If I take my 72T distribution for the 2009year in one lump sum say, in Late November, can I take my distribution for 2010 in Jan 1020 only 2 months later??? Thanks!!
2009-04-28 01:29, By: Theresa M, IP: [18.104.22.168]
L2: 72T timingYes.
The distribution can be spaced however you wish as long as the exact annual amount is distributed during the calendar year.
That said, taking your 2010 distribution totally up front in January is going to require some very careful budgeting since you will not have access to any more funds for a full year.2009-04-28 01:35, By: Alan S., IP: [22.214.171.124]
L3: 72T timingAlan is right. Unless you have great resistance to spending like a drunken sailor, (no offense meant to sailors…) you will likely go thru both years payouts and find yourself about 3-6 months short of next payment due date. A suggestion is take a full first year in NOV, and then tell the custodian to start monthly payments the next January. That eliminates the problem, and still gives you a big payout in first year (first two months!) I have two 72 plans running, and first one was paid semi annually for 2 years, (March and Sept-2006 and 2007) then I switched to monthly in JAN of 3rd year, and it works much betterlike that. The other (newer) one has been monthly all along since it started in May 2007. KEN2009-04-28 23:22, By: Ken, IP: [126.96.36.199]
L4: 72T timingThanks, I have been living on my emergency fund so far this year in the hopes that the 120% rates will improve by november, then I will pay back my emergency fund with the proceeds of the 72T. Then I will need my next years dist pretty early 2010, either in monthly installments or lump sum ( I am pretty frugal so I think I can save some for later on 🙂 )2009-04-30 01:05, By: Theresa M, IP: [188.8.131.52]
L4: 72T timing”Unless you have great resistance to spending like a drunken sailor, (no offense meant to sailors…)”
Ken… if I may…
The spending propensity of inebriated mariners pales to insignificance when compared with that of sober politicians! 😉
Ed2009-05-07 03:51, By: Ed_B, IP: [184.108.40.206]