Distribution of money in 72t Question
L1: Distribution of money in 72t QuestionI started a 72t August 11-2011 with a monthly withdrawal. I was wondering if a person can take out multiple months of withdrawals at once after a monthly was set up. I want to purchase a piece of property and this would help greatly if I could do that. I know you have to make sure you only take out the exact amount yearly but dont know if you can readjust midstream Thanks in Advance2013-05-08 14:03, By: dalqui1956, IP: [22.214.171.124]
L2: Distribution of money in 72t QuestionYou stated the key point that you must take ONLY the exact, annual amount each year.
How you make the withdrawals is your choice and you may change it whenever you like. I assume that you have taken either 4 or 5 monthly withdrawals so far this year so you may accelerate the ramaining distributions to equal your exact, annual distribution amount.
If you do this the key is to first CANCEL THE MONTHLY DISTRIBUTIONS from your custodian and GET THE CANCELLATION CONFIRMATION IN WRITING!
Then you can direct the “one-time distribution” for the balance of the 2013 total amount. You’ll probably have to complete a distribution request form for this special destribution. Then you will probably have to complete a new distribution request form to restart monthly payments beginning in January, 2014.
When you talk with the Customer Service Rep at your custodian, tell him/her what you are doing and they can get all of the paperwork to you at once, or give instructions how to do everything online if they are set up that way.
Jim F2013-05-08 14:17, By: Jim F, IP: [126.96.36.199]