Client blew up 72t
L1: Client blew up 72tI have a client on 72t early disitributions who has taken about one year of payments so far.Just recently to prevent a home foreclosure and for other emergency needs he took a substantial extra one-time distribution. What can we do to “minimize” the damage from this action? If his situation allows, can he go ahead and stop the ongoing payments going forward without further penalty since he already “blew it” ? 2009-06-04 17:34, By: Eric Smith, IP: [22.214.171.124]
L2: Client blew up 72tI’m sure there will be a few other comments, but…
Start by reading Bill’s Article onBENZ v. Internal Revenue Service
After you read it, you can decide which course of action you and your client wish to take. You could bust the plan, pay the penalty and start over. Or, you could merely assume that the IRS willacquiesces and continue the plan.
Also check out this forum thread… http://72t.net/Forum/ForumViewDetails.aspx?R=26ae9936-7356-4b77-bba8-7409df6c7381
2009-06-04 17:41, By: Gfw, IP: [126.96.36.199]
L3: Client blew up 72tIn addition, see if any of the distributions could be allowed under the recent Benz case decision which appears to allow all other 72-T exceptions IN ADDITION TO the annual SEPP 72-T distributions. If they qualify, this might save him from having busted the plan.2009-06-05 15:15, By: dlzallestaxes, IP: [188.8.131.52]