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End of 5 years and 591/2

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ByDavid

L1: End of 5 years and 591/2A client has been taking distributions for 7 years and is turning 59 1/2 this month. Can the client begin to take regular distributions immediately after turnin 59 1/2 or should he wait until next month?2006-10-16 13:43, By: David, IP: [66.42.140.168]
L2: End of 5 years and 591/2Hello David:
In theory your client can make changes right after his age 59 1/2 since the 5-year rule is more than satisfied. However, I would check with the custodian and see what date they say will be the “earliest change date” as they may want to go an extra month vs your calculations. I would go with what the custodian says, especially if you ar only talking about maybe an extra month. Remember, if going an extra month means getting a “Code 2″ on the Form 1099-R, it”s more than worth the small wait. I had this exact situation with one of my clients andlife was good at tax time.
Jim2006-10-16 14:09, By: Jim, IP: [70.184.2.72]

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