How Can We Help?
< Back
You are here:
Print

BUSTED PLAN

Posted
Last Updated On
ByED

L1: BUSTED PLANI turned 59 1/2 on Feb 27th 2010. Up to that point I had been taking the same monthly distributions for 2 yrs. In April 2010 I was forced to take a large distribution that caused me to exceed my yearly total – busting my SEPP.I also continued to take my monthly distributions. Can you offer advice as towhat datewill apply when Icalculate my penalties for 2010 taxes formy busted plan? Would the penalty be paid up to the point my plan exceeded the annual distribution $ amount or would it be based on the entire calendar year2010 distributions.
As I’ve turned 59 1/2 & my plan has busted am I correct in thinking that I now have access to my remaining funds w/o a penalty.
Thanks in advance for your help, Ed2010-11-17 22:45, By: ED, IP: [173.3.209.171]

L2: BUSTED PLANYou wil owe the 10% penalty on SEPP distributions that occurred while the plan existed prior to your age 59.5 – you report the penalty on IRS Form 5329 – check out the “Resources/Links” option in the left menu to find form 5329 and the instructions. The IRS will calculate the interest owed on past due penalties.
Since you busted the plan and are over age 59.5, there is no 10% penalty on distributions after age 59.52010-11-17 23:37, By: Gfw, IP: [24.148.10.164]

Table of Contents