72(t) when a withdrawal has already occurred
L1: 72(t) when a withdrawal has already occurredClient under age 59.5 wants to establish SEPP. This will be administered by insurance company that has the IRA account in an annuity contract. The annuity was established in 2008by transfer from a stock brokerage account IRA. BEFORE the transfer to the insurance company and during calendar year 2008 the client had already made a withdrawal (not structured as a SEPP – he didn”t know about SEPP and stock broker said nothing). How do we properly handle SEPP in light of prior withdrawal?2008-03-07 10:09, By: John, IP: [184.108.40.206]
L2: 72(t) when a withdrawal has already occurredHello John:
There are numerous possibilities:
a. Just treat the 1st distribution as “non-qualified” and pay the 10% surtqax on it in 2009.
b. Treat the 1st distribution as part of a SEPP created immediately before that distribution.
c. If less than 60 days have transpired (quiter possible) roll that distribution back into an IRA.
2008-03-08 06:15, By: TheBadger, IP: [220.127.116.11]