earnings while drawing 72(t)

L1: earnings while drawing 72(t)
If I retire at 58 yrs old, and drawunder 72(t), may
I still work and have some earnings? What”s the
max I may earn?2007-11-24 17:04, By: bikeman, IP: [24.247.43.68]

L2: earnings while drawing 72(t)Yes. Just remember that the 72T goes for 5 years once started at your age. The max you can earn is only limited by your worth to the employer paying you.2007-11-24 19:48, By: Crazy Connie, IP: [130.13.99.48]

L2: earnings while drawing 72(t)Let me be clearer on the question:
So, I may draw a salary while still taking a 72(t) distribution and
that distribution is exempt from the 10% penalty tax? If the
answer is “No”, what is my salary limited to?2007-11-25 07:33, By: bikeman, IP: [24.247.43.68]

L2: earnings while drawing 72(t)Hello Bikeman:
You asked:
So, I may draw a salary while still taking a 72(t) distribution (YES) and
that distribution is exempt from the 10% penalty tax? (YES) If the
answer is “No”, what is my salary limited to? (There is no interrelationship between 72(t) distributions and earned income).
TheBadger
wjstecker@wispertel.net
2007-11-25 07:36, By: TheBadger, IP: [72.42.67.29]

L2: earnings while drawing 72(t)bikeman,
The 72(t) IRA withdrawal isadded to your job earnings on your tax return, and you pay taxes on all of it.You can make as much as you want at your job or multiple jobs (there are no restrictions) while receiving 72(t) payments, but significant earnings when combined with your IRA withdrawalsoften causes your total income (including IRA withdrawals) to be taxed in a higher bracket, so you may need to have additional taxes withheld from your pay to cover part ofthis potential tax bracket shortfall problem.KEN2007-11-25 07:44, By: Ken, IP: [75.67.65.254]

L2: earnings while drawing 72(t)At 58 we usually recommend not starting a SEPP 72-T because of the cumulative retroactive 10% penalty if you “bust” your plan because of changing needs. It is more advisable to see if you can come up with the applicable supplemental funds from other sources until 59 1/2.2007-11-25 11:52, By: dlzallestaxes, IP: [141.152.255.7]

L2: earnings while drawing 72(t)If you have an active 72t plan, and either salary or other unexpected income reduces your need for the 72t annual distribution, you can use the one time switch to the RMD method to substantially reduce the amount you must distribute for the 72t until the plan can terminate. Of course, you need to be quite sure that the income will be stable enough to get you to the end of the plan term.
You really should explore other options to raise funds for the very short time you have until you reach age 59.5. That will enable you to avoid 5 years of comparatively inflexible 72t distributions, notwithstanding the one time switch mentioned above.
2007-11-25 17:30, By: Alan S., IP: [24.116.165.60]