Busting 72(t) and using other early distribution exception
L1: Busting 72(t) and using other early distribution exceptionI don’t need to continue my 72(t) distributions and want to avoid paying taxes on unnecessary distributionsfor the final two years. If I stop and bust the 72(t), can I goback for the last 3 years, amend my tax returnsand apply the earlydistributionexceptions for my kids’ higher education expenses and medical expenses? This will at least absorb a portion of the penalty for those years.2009-12-03 00:19, By: joe k, IP: [126.96.36.199]
L2: Busting 72(t) and using other early distribution exception
This looks like a question for a good CPA.
Have you considered making the 1-time switch to the RMD method of calculating your SEPP? If you were to do this for the final 2 years, the amount distributed would only be 40-50% of that distributed under the amortization or annuitization methods. Depending on a lot of other factors, this might be less expensive than busting the SEPP. I have no answer for you here but offer this as a possibility that you could check.2009-12-03 05:30, By: Ed_B, IP: [188.8.131.52]