Age 59.5 Final Distribution

You are here:
< Back

L1: Age 59.5 Final DistributionI have what I think is a very simple question, but haven’t seen a clear answer. I’ve been taking Section 72T distributions for six years, and next year I become age 59 1/2. I assume that the requirement that I take these distributions “until” I become 59 1/2 means that I won’t have to take a distribution in the year in which I turn that age. Is this the right assumption, or must I take distributions for that year as well. Thanks for your thoughts on this2001-12-21 09:27, By: RLB, IP: [127.0.0.1]
L2: RE: Age 59.5 Final DistributionSorry for the delay in responding. I had an answer, but I wanted to check with a few others before responding to you question. First, let me say that you are right about there being no clear cut guidance. I have a tendency to take a conservative view and have always advised taking the final annual payment in the age 59.5 year. On the other hand, here is another response from my friend Barry: ‘If you are taking a monthly or quarterly payment, then I would continue taking it through the month you attain 59 1/2. However, if you’re taking an annual payment every December, if you’re over 59 1/2 in December, you would not be obligated to take it. All this assumes that the five year requirement is met.’ What happens if you turn 59.5 in December and the payment is scheduled for each January? Doesn’t seem reasonable that I could skip the 01/01/2001 payment because I turn 59.5 on 12/31/2001. In this case you would probably have to take the payment. I guess what we are both saying is that it depends on the individual details.2001-12-24 09:38, By: Gfw, IP: [127.0.0.1]