Change 72t payout due to disability/illness?

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L1: Change 72t payout due to disability/illness?I am wondering ifa 72t payout startedabout 4years ago, but the recipient has recently been diagnosed with a terminal illness, cana change be made to the payout orthe payout stopped without being penalized, due to this diagnosis? Or must I qualify as being disabled first to avoid the penalty? I would hope that there is some type of provision in the 72t that allows this.2008-04-29 10:41, By: zephyr man, IP: [24.127.112.133]
L2: Change 72t payout due to disability/illness?It can be once the disability status is confirmed. See attached thread by Cobra on this subject. Medical statements should be submitted by the appropriate MDs. An attempt to get the distributions coded with a “3” disability code from the IRA custodian is advisable, but even without that a 5329 can be filed if you can compile supporting evidence.
Since only the annual amount of a 72t plan is critical, in a given calendar year, distributions can be stopped and an effort made to secure disability status. If that fails by December, to play it safe, the balance of that year”s 72t requirement should be satisfied to eliminate the possiblility of retroactive penalties.2008-04-29 22:04, By: Alan S., IP: [24.116.165.60]