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depleted IRA on 72t

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Bymeg

L1: depleted IRA on 72ti understand the change to the old 72t rules state that if you deplete your IRA while still on 72t you will not be charged the 10% early withdrawal penalty. Is there any IRS form i need to submit as a result or just do nothing?2008-01-22 11:46, By: MEG, IP: [207.54.160.234]
L2: depleted IRA on 72tWow, I hope we don”t start seeing too many of this type of post given the market meltdown!
You are correct, there is no penalty. Of course, this applies to all your IRA accounts in the plan if you used the balances of more than one account when you initiated the plan, but only one of them has been depleted. I have not seen a recommended reporting procedure for this, so unless you want to wait for an inquiry, and particularly if you have already been filing a 5329, I would simply add a statement to the 5329 showing “account totally depleted”, add the usual exception code 02, and attach a copy of the IRA statement showing a -0- balance.
This also means that if you have any other IRAs or employer plans that can be rolled into an IRA, you could start another plan because the depleted account ends your obligations and totally terminates the prior 72t plan.2008-01-22 14:20, By: Alan S., IP: [24.116.165.60]

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