death of 72t owner

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L1: death of 72t ownerI have been taking 72(t) distributions for two years and have several years before I reach 59-1/2. My health is not good. If I should die prior to reaching the 59-1/2 mark, can my wife cease the distributions without penalty (she will not have the kind of medical expenses that I have)? Can she change the distribution amount? Can someone address these as well as letting us know where we can find info in the Internal Revenue Code (or Pub 590), so she can know what to do when/if my premature death occurs? Thanks, Sam2010-01-05 22:09, By: Sam, IP: []
L2: death of 72t ownerSam,Hopefully, that will not happen. However, both death and disability end the current 72t plan per the following copy from this site, referencing Sec 72(t)4.>>>>>>>>>>>>>(c) Section 72(t)(4) provides that if the series of substantially equal periodic payments that is otherwise excepted from the 10-percent tax is subsequently modified (other than by reason of death or disability) within a 5-year period beginning on the date of the first payment, or, if later, age 59 1/2, the exception to the 10-percent tax does not apply, and the taxpayer’s tax for the year of modification shall be increased by an amount which, but for the exception, would have been imposed, plus interest for the deferral period.>>>>>>>>>>>>>Your spouse can then take distributions from your IRA as death distributions without penalty, so there is no need for her to start her own new 72t plan. She could also roll yourIRA over to her own, but she should not do that before she reaches 59.5 so she can continue to receive penalty free distributions.Note that if you were just disabled your 72t plan would end, but then if you qualified under the definition of disability, youwould get penalty free distributions from your IRA with the disability code showing on Form 1099R.2010-01-06 04:20, By: Alan S., IP: []