Did the number of years change from 10 to 5 and if so what can I do different?
L1: Did the number of years change from 10 to 5 and if so what can I do different?
I started SEPP on my own in June of 2003. I was 50 1/2 at the time. In researching 72t I remember the 59 1/2 or ? years *WHATEVER COMES LAST*
The ? years was 9 1/2 or 10 years in the document then. Did it change?
I didn’t pay close attention to the nit in this detail because I figured I’d stay within the 72t rules for 10 or 11 years just to be ‘safe.’
But I could use a little extra cash sometime soon and can’t decide to make a withdraw at 59 1/2, or 10 years from June, 2003 or 9 1/2 years from June, 2003.
Does anybody have access to the documents circa 2003? thanks Joe F
2011-11-02 19:11, By: joef, IP: [188.8.131.52]
L2: Did the number of years change from 10 to 5 and if so what can I do different?
There has been no change in the rules since 2002. Use our First Modification Date calculator to determine the exact date when modification are possible.
The calculator can be found here…
2011-11-02 19:18, By: Gfw, IP: [184.108.40.206]
L3: Did the number of years change from 10 to 5 and if so what can I do different?
None of the above.
If your first distribution was in June 2003 when you were 50 1/2, then in June 2012 you will be 59 1/2 (meaning you were born in Dec 1952). That would be 9 years after June 2003, not 9 1/2 nor 10 years. Only 8 months from now.
2011-11-02 19:31, By: dlzallestaxes, IP: [220.127.116.11]
L4: Did the number of years change from 10 to 5 and if so what can I do different?
Just to refresh your memory, your plan had to be maintained for the longer of 5 years or until you reached 59.5. Attaining 59.5 was the longer of the two, so your plan modification (termination) date is as dlz stated.
Therefore, since you are within months of successfully completing your plan, take special precautions not to bust the plan now. In 2012 prior to reaching 59.5 you are allowed to distribute your entire annual 72t payment, a pro
rated payment by the month, or nothing. Therefore, if you need funds but want to preserve your plan, your best option is to wait until January, 2012 and then distribute your full annual payment. Then do not touch the IRA until after you reach 59.5 when you
can take out additional funds if you need to. What you do after 59.5 does not matter with respect to the 72t plan because your plan has ended. Of course, you also have to consider the tax bill if you take out your full annual in January and then take additional
amounts out after 59.5
2011-11-02 20:43, By: Alan S., IP: [18.104.22.168]