change to 72t mid year

L1: change to 72t mid yearI have been drawing on my IRA qualified rollover plan since Jan. 1st. I found out about the 72t program in late March and now wish to change my distributions to this plan to avoid the 10% penalty.
When the total amount of my 72t annual withdrawal amount is determined, do I have to DEDUCT my previous withdrawals so that my 1099R shows only the total amount of the 72t calculated annual amount? OR do I start drawing my 72t amount as a pro-rated amount effect April – December. If this is done then my 1099R may reflect a larger amount than the 72t calculated annual distribution.
2008-04-11 14:31, By: Maggie, IP: [68.204.244.251]

L2: change to 72t mid yearHello Maggie:
You really don”t give us the information we need to really figure out what you have done. Try posting the details as there are potentially several different solutions.
TheBadger
wjstecker@wispertel.net
2008-04-11 14:44, By: TheBadger, IP: [72.42.66.180]

L2: change to 72t mid yearWhat we are indicating here is the very real possibility to “back into” a valid 72t plan effective for all your 2008 distributions, and thereby avoid any penalties. As long as your plan meets the requirements, it does not matter if your original intent was not in place in January. In fact, you may even benefit by the higher interest rates available early this year compared to the present.
What would jettison this approach is having made any contributions to this IRA after the initial distribution including any rollovers into the IRA, such as late dividends from the employer plan from which this IRA was established. Another problem would be taking out so much that you cannot justify it for the entire year under the available plan calculation options.
Please post more detail as the Badger requested. That will enable more specific response.
2008-04-11 21:54, By: Alan S., IP: [24.116.165.60]