Attaining 59 1/2 issue

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L1: Attaining 59 1/2 issueHi, I have a client who started a 72(t) in December of 2002. She recently turned 59 1/2. She’s completed the required time (5 years or 59 1/2 whichever is longer). I’m told by the custodian that she cannot change her distribution amount until January 2012. Is this accurate per the IRS rules or is this their interpretation? Any help would be greatly appreciated.2011-02-25 18:38, By: mbdude8, IP: []
L2: Attaining 59 1/2 issueI would ask the custodian to give you the rule that they are going by for that interpretation, and if they cannot come up with one (I am guessing they cannot) you can always do trustee to trustee transfer of the whole IRA to a new custodian. You might even want to start by telling them that you plan on moving the entire IRA if they do not make the distribution changes that she wishes to make, since she has satisfied the rules of the 72T and completed her plan and passed age 59 1/2. KEN2011-02-26 04:58, By: Ken, IP: []