does taking cap gains dist cause 72t bust

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L1: does taking cap gains dist cause 72t bustI have a 72 t and am about 3-4 years into it. I am considering taking a capital gains distribution that is being paid to this IRA today as cash, and am wondering if that action would be considered something that would “bust” my 72t status. Obviously I will just reinvest it as usual if that is the case. Please advise and THANKS.ADDITIONAL INFO TO MY ORIGINAL POST/QUESTION:Thanks to the two of you for your replies. It is a MUTUAL FUND (sorry) and I have been reinvesting the capital gains distributions all along. I wanted to see if I took this one as cash in addition to my monthly SEPP payments would make my 72T bust…..and it sounds like yes, correct?2008-12-08 12:08, By: kj, IP: []
L2: does taking cap gains dist cause 72t bustLet’s start with… there are no capital gains distributions from an IRA – all distributions are ordinary income.If you take the distribution as part of your regular annual distribution amount, no problem.If you take the distribution in addition toyour regular annual distribution amount, you will have bustred the plan.You must take the scheduled annual distribution – no more and no less.2008-12-08 12:17, By: Gfw, IP: []

L2: does taking cap gains dist cause 72t bustI interpret his question differently. I do not think he is asking about taking the capital gain distribution as cash as an additional distribution from his SEPP 72-T.I assume that he has been having capital gains distributions from the MUTUAL FUND reinvested in the Mutual Fund. I think he is asking if it is OK to have the capital gain distribution taken as CASH this time, having it paid into the SEPP 72-T, rather than having it reinvested in the MUTUAL FUND. He is concerned that this might be deemed to be some type of change that would “bust” his current plan.The answer is NO, this type of change will not bust the plan.2008-12-08 13:01, By: dlzallestaxes, IP: []

L2: does taking cap gains dist cause 72t bustkj,After seeing your second posted paragraph, the answer is YES it WILL bust the plan if that extra CASH YOU WANT is paid to youin addition to the usual periodic “CASH” that is paid to you from your SEPP payments. No matter where the money comes from, if it is from the SEPP IRA that is the source of the 72T payments, other money cannot be added to your normal yearly total if you want to keep the plan intact.KEN2008-12-08 19:14, By: Ken, IP: []