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Busting a 72t

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ByAndy

L1: Busting a 72tLet’s say a client is taking out way too much from his IRA due to market loss and is under a 72t. Obviously, one option is the one time change to the minimum distribution method.
However, what if he busted the 72t, paid the 10% penalty on prior withdrawals, and started a NEW 72t with a new reasonable interest rate? Could he do this and use any of the three methods? I would also assume the 5 years would start over.2004-11-10 14:30, By: Andy, IP: [69.53.78.183]

L2: Busting a 72tHello Andy:
You are correct; however, don’t forget the interest as well on prior year distributions.
TheBadger
wjstecker@wispertel.net
2004-11-10 14:41, By: TheBadger, IP: [66.250.23.22]

L2: Busting a 72tWhat is the interest rate used?2004-11-11 10:10, By: Andy, IP: [69.53.78.183]

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