Distribution 1x per year

L1: Distribution 1x per yearCan the 72(t) distribution be 1x/year (versus monthly). i.e.
based on 12/31 fair market value, taxpapyer requests distributation
every January 15th for the required minimum distribution amount (based
on single life expectancy- recalulcated on your age each year?

Also, if your bithday is in March, I assume you would recalculate based
on age to be attained in March as that is the year of distribution
(though the distribution is made two months before your birthday in
january)?
2007-08-11 05:20, By: Phillips27106, IP: [71.76.211.201]

L2: Distribution 1x per yearHello Phillips:
One distribution per year is certainly acceptable and can be made anytime during the calendar year.
Also, you would use the taxpayer”s highest attained age for a year to compute the distribution; e.g. how old will (s)he be on 12/31/xx.
TheBadger
wjstecker@wispertel.net
2007-08-11 05:37, By: TheBadger, IP: [72.42.66.27]

L2: Distribution 1x per yearJust one point of clarification. For “life expectancy” purposes, the “age” is the attained age at some time during the year of distribution (which will be as of 12/31 of the year of distribution, even if he dies before that birthday), based upon a balance that must precede that date, and often is the preceding 12/31.

There can be some confusion for people who are familiar with the provision for deferring RMD from retirement plans at 70 1/2 whereby you can delay that FIRST distribution until 4/1 of the following year. However, in that unique situation, the FIRST distribution is based upon the attained age in the year you become 70 1/2, which in the case of a deferred payment would be the year before that FIRST distribution. Then, in those cases, the SECOND distribution would be properly calculated using the age to be attained by 12/31 of that SECOND year, and every year thereafter.2007-08-11 09:44, By: dlzallestaxes, IP: [151.197.32.215]